In September 2013, Cenveo Inc. acquired certain assets of National Envelope through the bankruptcy process. As part of the consideration for the acquisition, Cenveo issued approximately 2.1 million shares to the debt holders of National Envelope.
Under the terms of the purchase agreement, the debt holders were restricted from selling the Cenveo shares for a period of six months from the date of the acquisition. This six months period has now lapsed. The company believes that the recent increased trading activity and volatility in its stock is largely related to the expiration of the six-month restriction period.
“While we have just entered the second quarter, I am pleased with the progress that we are making across the company,” Robert G. Burton Sr., chairman and CEO, said. “Our integration efforts with National Envelope are in full gear and we are seeing improvements across the rest of our businesses. I look forward to sharing this positive momentum on our first quarter earnings call on May 8, 2014. Additionally, we will be presenting at the Barclays High Yield conference in Phoenix, on May 13 and 14.”