Comtech Telecommunications Corp CMTL shares are trading higher by 19.6% to $8.05 Monday afternoon after the company announced a $45 million strategic investment and the exchange of convertible preferred stock.
What Happened?
Comtech Telecommunications secured a $45 million investment from existing shareholders White Hat Capital Partners LP and Magnetar. The investment involves exchanging convertible preferred stock for a new series, boosting financial flexibility for capitalizing on recent contracts and meeting customer demand.
The funds will be used for working capital, debt repayment and growth initiatives. Additionally, CEO Ken Peterman expressed gratitude for the endorsement and says he views it as a pivotal moment for the company’s transformation.
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According to data from Benzinga Pro, CMTL has a 52-week high of $16.87 and a 52-week low of $6.52.
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