Alta Fox Files SC 13D for Daktronics

TL;DR

**DAKT:** Alta Fox just filed a 13D. Big stake incoming.

AI Summary

Alta Fox Capital Management, LLC, along with its affiliates Alta Fox Equity, LLC, and Alta Fox Genpar, LP, has filed an SC 13D on December 2, 2024, reporting beneficial ownership of Daktronics, Inc. (DAKT). The filing indicates a change in their holdings, with Connor Haley listed as a key contact. The filing does not specify the exact percentage of shares owned or the dollar amount involved.

Why It Matters

This filing signals a significant stake by an activist investor in Daktronics, potentially leading to changes in company strategy or management.

Risk Assessment

Risk Level: medium — Activist investor filings can introduce uncertainty and potential volatility for the company's stock.

Key Players & Entities

• Alta Fox Capital Management, LLC (company) — Filing entity
• Daktronics, Inc. (company) — Subject company
• Connor Haley (person) — Contact person for filing entity
• Alta Fox Equity, LLC (company) — Affiliated entity
• Alta Fox Genpar, LP (company) — Affiliated entity

FAQ

Key Financial Figures

• $18,620,492 — Alta Fox Opportunities is approximately $18,620,492, including brokerage commissions. 3,96
• $25 million — Alta Fox Opportunities to the Issuer of $25 million. On May 11, 2023 (the “Issuance D
• $6.31 — hares at an initial conversion price of $6.31 per Share, subject to adjustment in acc
• $7 m — e stated that the Conversion Amount was $7 million, to purportedly be converted into

Filing Documents

• n4695_x1-sc13d.htm (SC 13D) — 105KB
• n4695_x1exh99-1.htm (EX-99.1) — 6KB
• 0001539497-24-002570.txt ( ) — 113KB

Purpose of Transaction

Item 4. Purpose of Transaction . The Reporting Persons purchased the Shares based on their belief that the Shares, when purchased, were undervalued and constituted an attractive investment opportunity. Depending upon overall market conditions, other investment opportunities available to the Reporting Persons, and the availability of Shares at prices that would make the purchase or sale of Shares desirable, the Reporting Persons may endeavor to increase or decrease their position in the Issuer through, among other things, the purchase or sale of Shares on the open market or in private transactions or otherwise, on such terms and at such times as the Reporting Persons may deem advisable. Alta Fox Capital has engaged, and intends to continue to engage, in discussions with management and the Board of the Issuer regarding opportunities to unlock value at the Issuer, including changes to Board composition and improvements to the Issuer’s corporate governance. The Reporting Persons do not have any present plan or proposal which would relate to or result in any of the matters set forth in subparagraphs (a) - (j) of Item 4 of Schedule 13D except as set forth herein or such as would occur upon or in connection with completion of, or following, any of the actions discussed herein. Depending on various factors including, without limitation, the Issuer’s financial position, results and strategic direction, actions taken by the Issuer’s management and the Issuer’s board of directors (the “Board”), other investment opportunities available to the Reporting Persons, the price levels of the Shares, conditions in the securities markets and general economic and industry conditions, the Reporting Persons may in the future take such actions with respect to their investment in the Issuer as they deem appropriate including, without limitation, engaging in communications and information exchanges with the Issuer’s management and Board, engaging

Interest in Securities of the Issuer

Item 5. Interest in Securities of the Issuer . The aggregate percentage of Shares reported owned by each person named herein is based upon a denominator that is the sum of (i) 46,648,863 Shares outstanding, as of August 26, 2024, which is the total number of Shares outstanding as reported in the Issuer’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on September 4, 2024 and (ii) 3,968,033 Shares currently issuable upon the conversion of the Convertible Notes. A. Alta Fox Opportunities (a) As of the date hereof, Alta Fox Opportunities beneficially owns 5,933,019 Shares, including 3,968,033 Shares currently issuable upon the conversion of certain Convertible Notes. Percentage: Approximately 11.7% (b) 1. Sole power to vote or direct vote: 0 2. Shared power to vote or direct vote: 5,933,019 3. Sole power to dispose or direct the disposition: 0 4. Shared power to dispose or direct the disposition: 5,933,019 (c) The transactions in the Shares by Alta Fox Opportunities during the past sixty days are set forth in Schedule A and are incorporated herein by reference. B. Alta Fox GP (a) Alta Fox GP, as the general partner of Alta Fox Opportunities, may be deemed the beneficial owner of the 5,933,019 Shares owned by Alta Fox Opportunities. Percentage: Approximately 11.7% (b) 1. Sole power to vote or direct vote: 0 2. Shared power to vote or direct vote: 5,933,019 3. Sole power to dispose or direct the disposition: 0 4. Shared power to dispose or direct the disposition: 5,933,019 (c) Alta Fox GP has not entered into any transactions in the Shares during the past sixty days. The transactions in the Shares on behalf of Alta Fox Opportunities during the past sixty days are set forth in Schedule A and are incorporated herein by reference. C. Alta Fox LLC (a) Alta Fox LLC, as the general partner of Alta Fox GP, may be deemed the beneficial owner of the 5,933,019 Shares owned by Alta Fox Opportunities. Percentage:

Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer

Item 6. Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer . On December 2, 2024, the Reporting Persons entered into a Joint Filing Agreement in which the Reporting Persons agreed to the joint filing on behalf of each of them of statements on Schedule 13D with respect to the Shares of the Issuer to the extent required by applicable law. The Joint Filing Agreement is attached hereto as Exhibit 99.1 and is incorporated herein by reference. The descriptions of the Securities Purchase Agreement and Convertible Notes set forth in Item 4 above are incorporated herein by reference. Other than as described herein, there are no contracts, arrangements, understandings or relationships among the Reporting Persons, or between the Reporting Persons and any other person, with respect to the securities of the Issuer.

Material to be Filed as Exhibits

Item 7. Material to be Filed as Exhibits .

is hereby amended

Item 7 is hereby amended to add the following exhibit: 99.1 Joint Filing Agreement, dated December 2, 2024.

SIGNATURES

SIGNATURES After reasonable inquiry and to the best of his knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct. Dated: December 2, 2024 ALTA FOX OPPORTUNITIES FUND, LP ALTA FOX EQUITY, LLC By: Alta Fox GenPar, LP, its general partner By: P. Connor Haley, its manager ALTA FOX GENPAR, LP ALTA FOX CAPITAL MANAGEMENT, LLC By: Alta Fox Equity, LLC, its general partner By: P. Connor Haley, its manager By: /s/ P. Connor Haley Name: P. Connor Haley Title: Authorized Signatory /s/ P. Connor Haley P. Connor Haley SCHEDULE A Transactions in the Shares During the Past Sixty Days Nature of Transaction Amount of Securities Purchased/(Sold) Price ($) Date of Purchase/Sale ALTA FOX OPPORTUNITIES FUND, LP Purchase of Common Stock 292,468 12.9252 10/10/2024 Purchase of Common Stock 46,812 13.3085 10/11/2024 Purchase of Common Stock 181,203 13.4973 10/14/2024 Purchase of Common Stock 80,021 13.5849 10/15/2024 Purchase of Common Stock 58,530 13.6188 10/16/2024 Purchase of Common Stock 54,296 13.6951 10/17/2024 Purchase of Common Stock 108,591 13.6250 10/18/2024 Purchase of Common Stock 79,816 13.5470 10/21/2024 Purchase of Common Stock 272,563 13.4436 10/22/2024 Purchase of Common Stock 42,129 14.6244 11/22/2024

View Full Filing

View this SC 13D filing on SEC EDGAR