MIND TECHNOLOGY, INC current report, Q4 FY2019

Business Context and Reporting Period

Company: Mitcham Industries, Inc. (Trading Symbol: MIND, MINDP)
Filing Type: Form 8-K (Current Report)
Date of Report: December 18, 2019
Event: Entry into a Material Definitive Agreement (Amended and Restated Equity Distribution Agreement).

Key Financial Metrics

This filing does not contain revenue, profit, cash flow, margin, debt, or liquidity metrics. It is a disclosure of a corporate agreement rather than a financial performance report.

Material Changes and Agreement Details

  • Agreement: Entered into an Amended and Restated Equity Distribution Agreement with Ladenburg Thalmann & Co. Inc. (the "Agent").
  • Securities Covered: Up to 500,000 shares of 9.00% Series A Cumulative Preferred Stock (liquidation preference $25.00 per share).
  • Remaining Availability: 433,564 shares were previously sold under the prior agreement; the current filing covers the remaining balance (up to 66,436 shares).
  • Sale Method: "At-the-market" offerings on the NASDAQ Global Select Market or negotiated transactions.
  • Compensation: The Agent is entitled to up to 2.0% of gross proceeds from sales.
  • Flexibility: The Company has no obligation to sell any shares and may suspend offers at any time.

Guidance, Risks, and Related Parties

  • Related Party Transaction: Peter H. Blum, a director of Mitcham Industries, Inc., serves as Co-CEO and Co-President of the Agent (Ladenburg Thalmann & Co. Inc.).
  • Future Services: The Agent and its affiliates may provide banking and advisory services for customary fees and may hold long or short positions in the Company's securities.
  • Registration: Shares will be issued pursuant to a Form S-3 Registration Statement declared effective on October 3, 2019.

Investor Verification Checklist

  • Verify the exact number of Series A Preferred shares remaining available for sale (66,436) versus the total authorized under the new agreement (500,000).
  • Review the attached Exhibit 1.1 (Amended and Restated Equity Distribution Agreement) for specific termination clauses and pricing mechanisms.
  • Monitor future filings for actual sales executed under this agreement and the resulting dilution or cash proceeds.
  • Confirm the current market price of the Series A Preferred Stock (MINDP) to assess the potential proceeds from the 2.0% commission structure.