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CPI Card Group Inc. Faces Ownership Risk: Tricor Funds Hold 43% Stake, Impacting Corporate Decisions

CPI Card Group Inc. Faces Ownership Risk: Tricor Funds Hold 43% Stake, Impacting Corporate Decisions

CPI Card Group Inc. (PMTS) has disclosed a new risk, in the Share Price & Shareholder Rights category.

CPI Card Group Inc. faces a significant business risk due to the substantial ownership held by Tricor Pacific Capital Partners (Fund IV) and its affiliates, collectively known as the Tricor Funds, which control approximately 43% of the company’s common stock. This ownership allows the Tricor Funds to exert considerable influence over corporate decisions, including director elections and significant transactions, potentially leading to conflicts with the interests of other shareholders. Such influence might result in decisions that could negatively impact the market value of CPI Card Group Inc.’s securities and hinder changes in company control. This concentration of ownership poses a risk by potentially delaying or preventing beneficial corporate actions, adversely affecting other shareholders.

Overall, Wall Street has a Moderate Buy consensus rating on PMTS stock based on 2 Buys.

To learn more about CPI Card Group Inc.’s risk factors, click here.

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Questions or Comments about the article? Write to editor@tipranks.com
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