Company: PENG
Filing Date: 2025-04-02
Form Type: 10-Q
Source: 0001628280-25-016182
Chunk: 56

Company: Penguin Solutions, Inc.
Filing Date: 2025-04-02
Form: 10-Q
Item: Part I, Item 1
Chunk 56
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 million. Liquidation PreferenceIn case of a Liquidation Trigger Event (as defined in the CPS Certificate of Designation), each holder of the CPS will be entitled to receive, in preference to holders of the ordinary shares, the greater of (i) the original issue price plus accrued but unpaid dividends (whether or not declared) to the date of the applicable Liquidation Trigger Event to the extent such accrued but unpaid dividends are not compounded dividends as of such time and (ii) the amount such holder of the CPS would receive had such holder, immediately prior to such Liquidation Trigger Event, converted the CPS into ordinary shares. The liquidation preference associated with the CPS was $1,000 per share at February 28, 2025.Voting RightsExcept as specified under applicable law, each holder of the CPS will be entitled to vote or consent as a single class with the holders of ordinary shares on all matters submitted for a vote of or consent by holders of ordinary shares, such number of votes equal to the largest number of whole ordinary shares in which all CPS held of record by such holder could then be converted.Director Designation RightsSKT (through the SPV) is entitled to nominate one director if the total number of directors of the Company is eleven or less, and two directors if the total number of directors of the Company is twelve or more, to be elected or appointed to the Board of Directors of the Company (any such director, an “Investor Designee”). The right to nominate an Investor Designee continues until such time as SKT and its subsidiaries and affiliates (including the SPV) beneficially own less than five percent of the ordinary shares then issued and outstanding (calculated on a fully-diluted basis) directly or by holding the CPS.

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Redemption RightsThe CPS will not be redeemable or repurchased upon the election of the holders of the CPS. We may repurchase the CPS in one installment upon notice to the holders of the CPS, provided that no such notice shall be sent until at least five years after the date of the closing of the SKT Investment.Share Repurchase AuthorizationOn April 4, 2022, our Board of Directors approved a $75.0 million share repurchase authorization (the “Initial Authorization”), under which we may repurchase our outstanding ordinary shares from time to time through open market purchases, privately-negotiated transactions or otherwise. On January 9, 2024, we announced that the Audit Committee of the Board of Directors approved an additional $75