Thursday, April 16, 2009

Hackett's parent company has over 1 TRILLION shares outstanding

I haven't spent a lot of time on the Hacketts story but since the parent company of Hacketts - Seaway Valley Capital Corporation - is a public company I thought I'd just take a look at their latest filing with the government. Clearly, this is a complex situation and I only looked that latest filing on 4/13 (link here), but the one thing that jumps off the page is the convoluted capital structure of such a tiny company.

The Seaway Valley corp has over 1 TRILLION, yes with a T!! - common share equivalents outstanding.

That's so ridiculous that it's laughable. I can't ever remember seeing a company with more than a few billion shares outstanding. The company is now proposing to do a 1 for 1,000 reverse split (if you had 1,000 shares of the old Seaway Valley, you'll get 1 share of the new company) so that it's outstanding shares will fall to "just" 1.2 billion, and they'll have 8 billion shares available for future acquisitions.

This gets a little detailed but the bulk of the shares outstanding seem to be due to a preferred stock issuance to a Mr. Scozzafava --- "100,000 shares of Series E Preferred Stock, par value $0.0001 per share, all of which were outstanding on the Record Date. The outstanding shares of Series E Preferred Stock were entitled to a total of 1,002,425,142,364 votes on the Record Date – i.e. 10,024,251 votes per share."

I haven't followed this story closely enough to have any real insight (other than enjoying Hackett's selection of North Face products) but since I've recently talked about what an insane number a TRILLION of anything is, I thought I'd pass along that nugget.

Cheers!

9 comments:

Anonymous said...

So, let me get this straight. I'd like to buy you out, I don't have any money, but I have...shares! So you get a share! You get a share! You get a share! We all get a share of nothing!

Anonymous said...

Hmm, what to do? Well, i guess i would start by kicking the shit out of whoever thought it was ok to issue a TRILLION shares instead of folding a long time ago. These idiots with their PHD and "MASTER" degrees. Its all coming to light that they and their families have been bullshitted by the "IVY" league colleges and themselves. They believed that they where some how smarter because they went to a private college. HA HA, look what the idots have done all throughout the country, they have ruined investor confidence with their incompetence. I am feeling smart with my associate degree from SUNY. I have zero debt, driving a car thats 20 years old (which easily and quickly passes inspection), and most of all, my family and I are happy. So i sit back and watch the so-called leaders fail miserably, but i feel some pity for those investors that believed and trusted the idiots. My advice: Trust yourself first and foremost and invest in yourself first and foremost. Dont throw your money away to cons and idiots with big money degrees, just dont do it.

Anonymous said...

The "elite" of Gouverneur, the Tom Scozzaffas and Henry Leaders, are business morons. There is a reason that nobody wants to do business in Gouverneur. These big shots in training are it.

gh said...

Hey, Anonymous 2- you misspelled "idiot" while pointing out how smart you were. And it was awesome.

Anonymous said...

Long time ago when I saw the principals involved in wisebuys
I knew something was up as they brought on the retail wizard who was the president of Ames Dept stores(who took that company to the ground)...
Hacketts should have done their homework and told Wisebuys people to get lost....
Might be only 1 Hacketts but it would still be a good Hacketts
Thanks

Anonymous said...

Anyone with any sense could see the demise of Hackett's soon after Seaway took it over. They tried to expand WAY too fast as opposed to opening just a few stores and confirm financial viability. Plus, selling high end products at low margins has never worked for anyone. Seaway took a great business and ran it straight into the ground.

Anonymous said...

So let me get this straight, the Scozzfavas are getting ready to unload their stock and make millions by converting their preferred to common?

The Artful Blogger said...

Thanks for all of the comments - It's interesting to see such passion for a local retailer.

Re: the last post - I don't think I suggested anyone is "getting ready to unload their stock". I just meant to point out that Seaway Valley has over 1 trillion common shares (if fully converted). That number just jumped off the page at me.

Anonymous said...

I read some financial blogging on the Scozzafava's and their so called "financial expertise" a few months ago...it predicted a complete collapse because of their leadership and how they were doing things. Too bad for the Hackett's, it was a great store, and was a big hope for Gouverneur.