Company: MGLD
Filing Date: 2025-01-27
Form Type: 424B5
Source: 0001493152-25-003788
Chunk: 13

Company: Marygold Companies, Inc.
Filing Date: 2025-01-27
Form: 424B5
Chunk 13
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 subject us to securities class action litigation, which could result in substantial costs and divert our management’s attention from other business concerns, which could potentially harm our business. Also, because we are a controlled company, there is a limited market for our common stock, and we cannot assure our stockholders that a trading market will persist.

Additionally, selling short is a technique used by a stockholder to take advantage of an anticipated decline in the price of a security. A significant number of short sales or a large volume of other sales within a relatively short period of time can create downward pressure on the market price of a security. Holders of our securities could, therefore, experience a decline in the value of their investment as a result of short sales of our common stock.

Anti-takeover provisions in our organizational documents as well as a voting agreement between certain family trusts of which our CEO and one of our directors are trustees could make it difficult for our stockholders to replace or remove our current board of directors or have the effect of discouraging, delaying or preventing a merger or acquisition, which could adversely affect the market price of our common stock.

Several provisions of our amended and restated articles of incorporation, as amended, and amended and restated bylaws could make it difficult for our shareholders to change the composition of our board of directors in any one year, preventing them from changing the composition of management. See “Description of Our Capital Stock – Applicable Antitakeover Law”in the accompanying prospectus. Further, pursuant to a voting agreement, dated January 27, 2015, between the Nicholas and Melinda Gerber Living Trust (“Gerber Trust”), of which Nicholas D. Gerber, our CEO, is a trustee, and the Schoenberger Family Trust (“Schoenberger Trust”), of which Mr. Schoenberger, a director, is a trustee, the Gerber Trust and Schoenberger Trust have agreed to vote all voting securities owned by them or subsequently acquired to elect Mr. Gerber and Mr. Schoenberger or their respective designees to our board of directors, to elect five other board designees mutually agreed upon by them, and to elect additional directors nominated pursuant to our bylaws and articles of incorporation. As of the date of this prospectus supplement, the Gerber Trust and Schoenberger Trust own approximately 56% of our voting stock. The foregoing may discourage, delay or prevent a merger or acquisition that shareholders may consider favorable.

Risks Related to our Business and Structure

We may face double taxation