Holiday RV Superstores Inc., the dealership chain doing business as Recreation USA, revealed today (March 26) a plan to provide all of its shareholders with warrants giving them the right to buy more Holiday RV Superstores stock.
The company’s program is a conversion plan allowing it to transform each share of its common stock into one share of common stock plus one stock purchase warrant.
The conversion is expected to be completed within 90 days.
Holiday RV Superstores also announced, after the stock market closed on Friday (March 23), that it lost $2.7 million during the November-through-January period. But on Monday, Holiday RV Superstores President Marcus Lemonis said he believes the 14-location RV and boat retailer will be profitable during the February-through-April period.
The company has reduced its inventory by $7 million bringing its “closer to the company’s target of 120-day inventory levels,” Lemonis said.
“Although some feel that the economy is slowing, we continue to see strong consumer traffic,” Lemonis continued. “Consumers are simply looking to spend less on their monthly payments, and we have modified our store inventories to provide a product mix that better meets their need for a more sensible monthly payment.”