Company: PENG
Filing Date: 2025-06-18
Form Type: CORRESP
Source: 0001193125-25-142901
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Company: Penguin Solutions, Inc.
Filing Date: 2025-06-18
Form: CORRESP
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Response:We respectfully acknowledge the Staff’s comment. The “share issuance
limitation” referenced in the disclosure on page 20 of the Company’s Form 10-Q for the quarter ended February 28, 2025 refers to the “Ordinary Share Issuance Limitation” contained in
the Certificate of Designation relating to the Company’s convertible preferred shares, par value $0.03 per share (the “CPS”). For clarity and to avoid any confusion, the Company acknowledges that it discusses the Ordinary Share
Issuance Limitation in the “Conversion” section of the Form 10-Q; however, the Ordinary Share Issuance Limitation primarily relates to the form in which the Company pays dividends on the CPS, as
discussed below, which the Company will clarify in its next quarterly report on Form 10-Q by moving the discussion of the Ordinary Share Issuance limitation to the “Dividends” section of the Form 10-Q.

Under the Certificate of Designation, dividends on the CPS accrue at 6% per annum. The Company has the sole
discretion to either pay these dividends in cash or allow them to compound. Dividends that the Company does not pay in cash are compounded quarterly and have the effect of increasing the number of Ordinary Shares (as defined below) that a CPS holder
would receive upon conversion.

The Ordinary Share Issuance Limitation memorializes that laws and regulations (many of which will be applicable to all
public companies) may restrict share issuance or ownership levels unless certain approvals are obtained. One example of such laws and regulations is Nasdaq stock market rules that would require shareholder approval before issuance of 20% or more of
the outstanding ordinary shares or voting power of the Company. If compounded dividends payable on a dividend payment date would cause the number of the Company’s Ordinary Shares issuable upon a conversion of the CPS to exceed any such legal or
regulatory thresholds without the receipt of necessary approvals, the Ordinary Share Issuance Limitation provides that the Company would pay the applicable dividend in cash.

In all cases, the CPS holders receive the full economic value of their dividends. The Ordinary Share Issuance Limitation relates solely to the form of payment
of, and not the value of, the dividends. Furthermore, as indicated above, the Ordinary Share Issuance Limitation merely acknowledges that applicable laws and regulations could, depending on circumstances, restrict the Company’s ability to
compound dividends unless it obtains certain approvals. In