The Board intends to deliver to Alta Fox notice of the conversion on November 11, 2024, with a conversion date of December 3, 2024. The Company intends to convert the remainder of the Convertible Note over the next several months, in tranches of up to $7 million in face value every 30 days, as provided for in the Convertible Note.
Daktronics has delivered outstanding financial results over the last twelve months, with record revenue, gross profit and operating income in fiscal year 2024, and strong returns for shareholders, with the Company's stock price increasing more than 300% over the last two years and over 175% since the issuance of the Convertible Note on May 11, 2023.1 This performance is the result of several initiatives implemented by the management team and Board, including strengthening the Company's financial position, reducing order backlog, and improving margins through operational enhancements and strategic cost reductions.
The Board's decision to force the conversion of the Convertible Note is consistent with the Company's ongoing focus on balance sheet optimization and cost efficiency and will save the Company approximately $5.4 million in interest expense over the remaining term of the Convertible Note. To help offset the share dilution that will result from ...
