Focused Compounding Fund Amends Parks! America Stake
Ticker: PRKA · Form: SC 13D/A · Filed: Mar 4, 2024 · CIK: 1297937
| Field | Detail |
|---|---|
| Company | Parks America, Inc (PRKA) |
| Form Type | SC 13D/A |
| Filed Date | Mar 4, 2024 |
| Risk Level | medium |
| Pages | 4 |
| Reading Time | 5 min |
| Key Dollar Amounts | $0.001, $3.6 million, $1.4 m, $800,000 |
| Sentiment | neutral |
Sentiment: neutral
Topics: ownership-change, sec-filing, 13d-amendment
Related Tickers: PRKA
TL;DR
Focused Compounding Fund updated its 13D filing for Parks! America (PRKA) - ownership change incoming?
AI Summary
Focused Compounding Fund, LP, through its filing on March 4, 2024, has amended its Schedule 13D/A regarding its holdings in Parks! America, Inc. The filing indicates a change in beneficial ownership, with Geoff Gannon and Andrew Kuhn listed as authorized contacts for Focused Compounding Capital Management, LLC.
Why It Matters
This filing signals a potential shift in the ownership structure or strategy of Parks! America, Inc., which could impact its stock performance and future business decisions.
Risk Assessment
Risk Level: medium — Changes in beneficial ownership filings can indicate activist investor intentions or significant stake adjustments, which carry inherent market risks.
Key Players & Entities
- Focused Compounding Fund, LP (company) — Filing entity
- Parks! America, Inc. (company) — Subject company
- Geoff Gannon (person) — Authorized contact for filer
- Andrew Kuhn (person) — Authorized contact for filer
- Focused Compounding Capital Management, LLC (company) — Manager for filing entity
FAQ
What specific changes in beneficial ownership are detailed in this Amendment No. 5 to the Schedule 13D/A?
The filing is an amendment to a Schedule 13D/A, indicating changes to previously reported information regarding beneficial ownership of Parks! America, Inc. by Focused Compounding Fund, LP. Specific details of the ownership change are not fully elaborated in the provided text but are the subject of the amendment.
Who are the key individuals associated with the filing entity, Focused Compounding Fund, LP?
Geoff Gannon and Andrew Kuhn are listed as authorized contacts for Focused Compounding Capital Management, LLC, which manages Focused Compounding Fund, LP.
What is the CUSIP number for Parks! America, Inc. common stock?
The CUSIP number for Parks! America, Inc. common stock is 701455107.
When was the previous company name for Parks! America, Inc. changed?
The former company name was Great American Family Parks Inc, and the date of the name change was July 21, 2004.
What is the business address and phone number provided for the filing entity?
The business address for Focused Compounding Fund, LP is 3838 Oak Lawn Avenue, Suite 1000, Dallas, TX 75219, and the business phone number is (443) 775-1227.
Filing Stats: 1,266 words · 5 min read · ~4 pages · Grade level 14.9 · Accepted 2024-03-04 17:22:01
Key Financial Figures
- $0.001 — me of Issuer) Common Stock, Par Value $0.001 per share (Title of Class of Securitie
- $3.6 million — December 31, 2023 the Company had over $3.6 million of cash and short term investments, (ii
- $1.4 m — n anticipated spending of approximately $1.4 million, which was to be fully funded fro
- $800,000 — om existing cash, (iii) the Company has $800,000 of availability under its credit facili
Filing Documents
- prka-sc13da_022824.htm (SC 13D/A) — 35KB
- 0001999371-24-003046.txt ( ) — 37KB
Purpose of Transaction
Item 4. Purpose of Transaction
of the Schedule 13D
Item 4 of the Schedule 13D is hereby amended and supplemented by adding the following: On February 28, 2024, Focused Compounding delivered a letter to the Issuer, offering to purchase the Issuer’s Common Shares in a private offering in the event that the Issuer decides to raise capital. The price offered for such Common Shares was a customary 10% to 20% discount from the current market price, and the purpose of the offer was to support the Issuer’s capital needs. The offer conditioned any such purchase on the negotiation and execution of definitive documentation, a waiver of the Rights Agreement, dated as of January 19, 2024 between the Company and Securities Transfer Corporation, as Rights Agent, with respect to such purchase and other customary terms, conditions and covenants and agreements. Focused Compounding expressed concern in its letter about whether the Issuer needs additional capital, given the issuer’s disclosures that (i) as of December 31, 2023 the Company had over $3.6 million of cash and short term investments, (ii) the 2024 fiscal year capital plan anticipated spending of approximately $1.4 million, which was to be fully funded from existing cash, (iii) the Company has $800,000 of availability under its credit facility, and (iv) Todd White, the Company’s CFO, has recently publicly confirmed that the Company’s capital structure remains strong. These disclosures suggest that the Issuer’s purpose for selling securities at this time would be to dilute Focused Compounding’s voting power in future shareholder votes, including at the annual meeting scheduled for June 6, 2024 (the “Annual Meeting”). On March 1, 2024, to prevent a significantly below market private sale of Common Shares by the Issuer, Focused Compounding filed a complaint directly and derivatively against the Issuer and its directors in the Eighth Judicial District Court of Clark County, Nevada seeking, inter alia , a temporary restrain