According to insiders, Super Micro Computer Inc. has enlisted the help of Evercore Inc. to boost its financial resources. This move comes as the server manufacturer, currently facing financial strain, seeks to stabilize its economic standing.
Super Micro specializes in high-performance server solutions and is grappling with the threat of delisting. The company missed a crucial August deadline to submit its annual financial report and is now exploring options to raise funds through both equity and debt channels. Those familiar with the situation, who preferred to remain anonymous, mentioned that the company is also considering a private investment in public equity (PIPE) and is in talks with private equity firms to assess their potential involvement.
These discussions are at a preliminary stage, and the exact course of action is still undecided. Both Super Micro and Evercore have chosen not to comment on the matter.
On Friday in New York, Super Micro’s shares fell by 3.9%, closing at $36.45, a sharp decline from their record high in March, reducing the company’s market valuation to approximately $21 billion. Post-market trading saw an additional drop of about 8%.
Compounding these challenges, Super Micro faced the resignation of its auditor, Ernst & Young LLP, in October, citing issues related to governance and transparency. Furthermore, the company is under investigation by the US Department of Justice following a report from the short-selling firm Hindenburg Research.
Last week, Super Micro stated its intention to submit the requisite documents by the February 25 deadline.
This update was brought to you with assistance from Ryan Gould and Brody Ford.
