White Hat Capital Partners Ups Stake in Comtech

TL;DR

White Hat Capital now owns 7.9% of Comtech, filing an amended 13D.

AI Summary

White Hat Capital Partners LP, on October 18, 2024, filed an amendment (Amendment No. 2) to its Schedule 13D regarding Comtech Telecommunications Corp. The filing indicates a change in beneficial ownership, with White Hat Capital Partners LP now holding 7.9% of Comtech's common stock. This filing follows previous amendments and suggests ongoing strategic interest in the company.

Why It Matters

This filing signals continued activist investor interest in Comtech Telecommunications Corp., potentially leading to changes in company strategy or management.

Risk Assessment

Risk Level: medium — Changes in beneficial ownership by significant investors can lead to increased volatility and potential strategic shifts for the company.

Key Numbers

• 7.9% — Ownership Stake (Percentage of Comtech Telecommunications Corp. common stock beneficially owned by White Hat Capital Partners LP as of the filing date.)
• 20241018 — Filing Date (The date on which Amendment No. 2 to the Schedule 13D was filed with the SEC.)

Key Players & Entities

• White Hat Capital Partners LP (company) — Filing entity
• Comtech Telecommunications Corp (company) — Subject company
• Mark R. Quinlan (person) — Contact person for White Hat Capital Partners LP
• 7.9% (percentage) — Percentage of Comtech common stock owned by White Hat Capital Partners LP

FAQ

Key Financial Figures

• $0.10 — me of Issuer) Common stock, par value $0.10 per share (Title of Class of Securitie
• $1,067.87 — th an initial liquidation preference of $1,067.87 per share (the per share liquidation pr
• $7.99 — f Common Stock at a conversion price of $7.99 per share of Common Stock (the same as
• $25.0 million — ty in the aggregate principal amount of $25.0 million (the " Subordinated Credit Facility ").

Filing Documents

• p24-3007sc13da.htm (SC 13D/A) — 136KB
• 0000902664-24-005899.txt ( ) — 138KB

of the Schedule 13D is hereby amended and supplemented to include the following

Item 3 of the Schedule 13D is hereby amended and supplemented to include the following: WHSP acquired (i) 24,071.05 shares of Series B-2 Convertible Preferred Stock (as defined in Item 4) reported herein by surrendering to the Issuer 24,071.05 shares of Series B-1 Convertible Preferred Stock for cancellation and (ii) 481.41 shares of Series B-2 Convertible Preferred Stock as October Additional Shares (as defined and described in the Subscription and Exchange Agreement). WHSP II acquired (i) 6,240.27 shares of Series B-2 Convertible Preferred Stock reported herein by surrendering to the Issuer 6,240.27 shares of Series B-1 Convertible Preferred Stock and (ii) 124.81 shares of Series B-2 Convertible Preferred Stock as October Additional Shares. Item 4. PURPOSE OF TRANSACTION

of the Schedule 13D is hereby amended and supplemented to include the following

Item 4 of the Schedule 13D is hereby amended and supplemented to include the following: Subscription and Exchange Agreement On October 17, 2024, the White Hat Funds entered into an Subscription and Exchange Agreement (the " Subscription and Exchange Agreement ") with the Issuer and the other investors listed on the signature pages attached thereto (each of the White Hat Funds and such other parties, an " Investor " and collectively, the " Investors ") pursuant to which the parties agreed to change certain terms of the Series B-1 Convertible Preferred Stock. The changes (i) altered the date on which preferred holders can opt to have the Issuer repurchase their Series B-2 Convertible Preferred Stock in certain circumstances, (ii) provided for increases to the dividend rate in certain circumstances and provided for an option for the preferred holders to elect to receive dividends in cash (to the extent permitted by law), and (iii) clarified the preferred holders' existing consent rights, among other things. To effect the changes described above, (i) WHSP exchanged 24,071.05 shares of Series B-1 Convertible Preferred Stock for 24,071.05 shares of the Issuer's newly issued Series B-2 Convertible Preferred Stock, par value $0.10 per share, with an initial liquidation preference of $1,067.87 per share (the per share liquidation preference of the Series B-1 Convertible Preferred Stock as of October 16, 2024) (the " Series B-2 Convertible Preferred Stock "), (ii) WHSP II exchanged 6,240.27 shares of Series B-1 Convertible Preferred Stock for 6,240.27 shares of Series B-2 Convertible Preferred Stock, (iii) WHSP acquired 481.41 shares of Series B-2 Convertible Preferred Stock as October Additional Shares and (iv) WHSP II acquired 124.81 shares of Series B-2 Convertible Preferred Stock as October Additional Shares. The transactions contemplated by the Subscription and Exchange Agreement closed on October 17, 2024 (the " Closing Date "). CUSIP No. 205826209 SCHEDULE 13D/A

of the Schedule 13D is hereby amended and supplemented to include the following

Item 6 of the Schedule 13D is hereby amended and supplemented to include the following: The Reporting Persons' response to Item 4 of this Amendment No. 2 is incorporated by reference into this Item 6. Mr. Quinlan holds a total of 54,655 restrict

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View this SC 13D/A filing on SEC EDGAR