Business Context and Reporting Period
Company: Energy Services of America Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: June 30, 2021
Event: Notice of redemption of 6.0% Convertible Cumulative Perpetual Preferred Stock, Series A.
Key Financial Metrics
The filing does not provide standard financial performance metrics such as revenue, profit, cash flow, margins, or total debt levels. The document focuses exclusively on the terms of a specific capital structure event.
| Security | Quantity | Redemption Price Basis | Conversion Price |
|---|---|---|---|
| Series A Preferred Stock | 206 shares | $25,000 per share + accrued dividends | $1.50 per share |
Material Changes
The Company intends to redeem all 206 outstanding shares of Series A Preferred Stock. This represents a material change in the Company's capital structure and potential cash outflow obligations.
- Redemption Date: September 1, 2021.
- Redemption Price: $25,000 per share plus all accrued and unpaid dividends up to, but excluding, September 1, 2021.
- Conversion Option: Shareholders may elect to convert shares into Common Stock instead of receiving cash redemption.
Guidance, Outlook, and Risks
Management Commentary: The Company has provided formal notice to preferred shareholders regarding the redemption. No forward-looking guidance on operations or earnings is included in this filing.
Contingencies and Unusual Items:
- Conversion Deadline: Shareholders must submit a notice of conversion at least two business days prior to September 1, 2021. Failure to do so results in automatic cash redemption.
- Fractional Shares: Cash will be issued in lieu of fractional shares at a rate of $25,000 multiplied by the fractional share amount.
Investor Verification Checklist
- Verify the total cash obligation for redemption (206 shares x $25,000 plus accrued dividends).
- Confirm the Company's current liquidity position to ensure it can fund the redemption by September 1, 2021.
- Review the conversion ratio impact on common stock dilution if shareholders elect conversion.
- Check for any subsequent filings regarding the actual execution of the redemption or conversion elections.