Digital Power Corporation (NYSE:DPW) has gained approval from all of its shareholders, with each of the 10 matters on the table for consideration winning a nod at the diversified electronics company’s yearly meeting. One of the most pressing proposals that won over shareholder approval in the vote gives authorization to the reincorporation of DPW from California over to the state of Delaware.
Moreover, add another corporate milestone to DPW’s belt in its reorganization game plan, which includes a formal name change effective as of today’s business close: DPW Holdings, Inc. While the company will retain its stock symbol DPW on the NYSE American national securities exchange, its name change will be a transition reflected in time, an exciting signal to the DPW team of an evolution to a holding player: one angling for financial finesse, growth, and expansion.
“The ongoing transition to a business model and structure as a holding company will provide the opportunity to be more shareholder centric and incorporate financial sophistication to all elements of the Company. We look forward to leveraging the many years of experience our management team has in investing, mergers, divestitures, capital deployment, credit analysis and setting capital structures,” commented Milton “Todd” Ault, III, the Company’s Executive Chairman. “The Company now has the option to consider spinoffs, IPOs of its subsidiaries and other strategic transactions designed to maximize shareholder value and enhance the Company’s ability to raise the capital it will need to further its long-term objectives. Our focus for 2018 is to reward our shareholders and increase shareholder value as we continue to grow and expand the Company. We also are very committed to being transparent with our shareholders, investors and the public,” said Mr. Ault.
The Company reported today that during the current quarter it has experienced a significant improvement in its balance sheet and expects, among other improvements, that its December 31, 2017 balance sheet will reflect:
- Cash and marketable securities, which are classified as available-for-sale securities, of approximately $2.5 Million;
- Other investments, inclusive of the Company’s investment in Avalanche International Corp of approximately $9 Million;
- A significant reduction in short-term debt during the month of December 2017 of approximately $4 million;
- The conversion of Series C Preferred Stock, a 10% dividend paying equity security, into Common Stock.
Additionally, the Company is announcing that it has developed a new web site scheduled to launch the morning of January 2, 2018 that will show the transition to a holding company business model displaying its new corporate structure.
The Company’s annual meeting was held at its corporate headquarters located in Fremont CA and was open to shareholders only.
Shares of Digital Power are currently trading up nearly 4% to $3.82, or up $0.13. DPW has a 1-year high of $5.95 and a 1-year low of $0.40. The stock’s 50-day moving average is $2.70 and its 200-day moving average is $1.09.
Digital Power Corp. engages in the design, development, manufacture, and sale of customized and flexible power system solutions. Its products include adapters, open frame, capacitor chargers, compact peripheral component interface, and front end. It operates though the North America and Europe geographic segments. The North America segment comprises sales through Digital Power Corporation. The Europe segment includes sales through Digital Power Limited.