SeaChange says has $131M of NOLs at Jan-end, board adopts tax plan to preserve

SeaChange International announced that its Board of Directors adopted a Tax Benefits Preservation Plan, dated August 16, by and between the Company and Computershare Trust Company as rights agent, that is intended to protect and preserve the ability of the Company to use its existing net operating loss carryforwards and certain other tax assets to reduce the Company’s potential future federal income tax obligations. As of January 31 the Company had United States federal NOLs of approximately $131M. The Plan is similar to the Company’s previous Tax Benefits Preservation Plan, as amended, dated March 4, 2019, by and between the Company and Computershare as rights agent, which expired on March 4, 2022. The Company’s use of its NOLs could be substantially limited if the Company experiences an “ownership change” as defined in Section 382 of the Internal Revenue Code, as amended…In general, an ownership change would occur if one or more of the Company’s stockholders who are deemed to be “5% shareholders” under Section 382 collectively increase their aggregate ownership of the Company’s common stock by more than 50 percentage points over the lowest percentage owned by such stockholders at any time within a rolling three-year period.