Montrose Environmental Group redeems Series A-2 preferred stock in full

Montrose Environmental Group, Inc. (NYSE:MEG), an environmental services company with a market capitalization of $763 million, announced Monday it has completed the voluntary full redemption of all issued and outstanding shares of its Series A-2 Preferred Stock. According to a statement based on a recent SEC filing, the redemption took place on July 1.

The Series A-2 Preferred Stock, which was held by OCM Montrose II Holdings, L.P., had a stated value of $62.2 million at the time of redemption. The company paid this amount in cash, utilizing both cash on hand and borrowings under its existing credit facility. According to InvestingPro data, Montrose maintains a healthy current ratio of 2.05, indicating sufficient liquid assets to meet short-term obligations.

Following the transaction, there are no remaining shares of the Series A-2 Preferred Stock outstanding. As a result, OCM Montrose II Holdings, L.P. no longer holds the right to appoint a member to Montrose Environmental Group’s board of directors.

The company stated that further details regarding the rights and terms of the Series A-2 Preferred Stock can be found in the Certificate of Designations, which is incorporated by reference in its annual report filed with the Securities and Exchange Commission on March 3, 2025.

This report is based on a press release statement and the company’s filing with the SEC.

In other recent news, Montrose Environmental Group announced changes to its corporate governance structure following its 2025 Annual Meeting of Stockholders. The company will declassify its Board of Directors, transitioning to annual elections for all directors by the 2028 Annual Meeting. This change is expected to enhance the company’s accountability and responsiveness to stockholders. Additionally, Montrose has secured a $3 million emissions monitoring project with a public multinational energy company. The project will involve deploying Montrose’s services across multiple operating basins in three U.S. states. Montrose’s approach includes advanced optical gas imaging and engineering-driven inspection techniques aimed at minimizing greenhouse gas emissions. The company highlighted that early results from similar projects have shown a significant reduction in reported emissions. These recent developments reflect Montrose’s commitment to robust corporate governance and environmental solutions.

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