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Parks America CFO steps down, sells shares to fund

Published 06/09/2024, 22:42
PRKA
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Parks America, Inc. (OTCPink:PRKA), a miscellaneous amusement and recreation services provider, announced the upcoming departure of its Chief Financial Officer, Todd R. White. The resignation is set to take effect on December 31, 2024. Mr. White will continue in his role and receive his regular salary until the end of his tenure.


In addition to stepping down as CFO, Mr. White also resigned from the company's Board of Directors on September 3, 2024. His resignation from the board is not due to any disagreements with the company's operations, policies, or practices.


Furthermore, a Stock Purchase Agreement was executed between Mr. White and Focused Compounding Fund, LP, where Focused Compounding acquired 1,344,555 shares of common stock from Mr. White at $0.40 per share, totaling $537,822.


This transaction was completed on September 5, 2024. Notably, Geoffrey Gannon and Andrew Kuhn, who are members of the Parks America Board of Directors, are principals of Focused Compounding.


This series of events, including the officer's departure and the stock transaction, was reported in a Form 8-K filed with the Securities and Exchange Commission on September 6, 2024. The information is based on a press release statement.


In other recent news, Parks America, Inc. has been the subject of significant board changes and shareholder activity. The company recently announced the immediate resignation of Lisa Brady, a board member who expressed concerns regarding the strategic decisions of the board, specifically issues with recent hiring decisions and potential breaches of fiduciary duties.


In addition, Parks America shareholders elected seven new board members during the company's 2024 Annual Meeting. The newly elected members include Lisa Brady, Jon M. Steele, Todd R. White, Geoffrey Gannon, Andrew Kuhn, Jacob McDonough, and Ralph Molina. Shareholders also ratified GBQ LLC as the company's independent registered accountants for the fiscal year ending September 29, 2024.


However, the executive compensation proposal did not pass, with a majority of shareholders voting against it. A non-binding vote on the frequency of future Say-On-Pay votes revealed a preference for annual intervals, although many votes also favored a three-year interval. Furthermore, a proposal to repeal any bylaw provisions not included in the Bylaws as of June 12, 2012, was approved.


InvestingPro Insights


As Parks America, Inc. (OTCPink:PRKA) navigates through the transition of its Chief Financial Officer and board dynamics, investors may find value in considering key financial metrics and insights. According to InvestingPro data, Parks America boasts an impressive gross profit margin of 86.19% for the last twelve months as of Q3 2024, highlighting efficient operations and strong pricing power. Moreover, the company's liquid assets exceed its short-term obligations, suggesting a solid financial position for meeting its immediate liabilities.


However, despite these strengths, Parks America has not been profitable over the last twelve months, reflected in a negative P/E ratio of -22.43. The company also trades at a high EBIT valuation multiple, indicating that its earnings before interest and taxes are valued richly by the market. While the company has demonstrated a high return over the last decade, it does not pay dividends, which may influence the investment strategies of income-focused shareholders.


For investors seeking a deeper analysis, InvestingPro offers additional tips on Parks America, which can be found at https://www.investing.com/pro/PRKA. These insights may provide valuable context for the company's financial health and future prospects as it undergoes leadership changes.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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