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Get filing alertsStar Equity launches up to $8.7M at-the-market preferred stock offering program
Filed May 18, 2026 · Period ending May 18, 2026 · ~1 min read
Key Changes
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Company can now sell up to $8.7 million of its 10% Series A Preferred Stock through Ladenburg Thalmann at market prices, providing flexible capital access without obligation to sell any specific amount or timeline.
Item 1.01 verify on EDGAR → -
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Sales will be made through existing shelf registration (effective April 1, 2026), allowing immediate execution without additional SEC approval delays.
Item 1.01 verify on EDGAR → -
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Ladenburg Thalmann will receive 3% commission on gross sales proceeds, a standard rate for at-the-market programs.
Item 1.01 verify on EDGAR →
Summary
Star Equity Holdings established an at-the-market (ATM) equity program allowing it to raise up to $8.7 million by selling shares of its 10% Series A Cumulative Perpetual Preferred Stock through Ladenburg Thalmann.
Unlike traditional stock offerings, ATM programs let companies sell shares gradually into the open market at prevailing prices, providing flexible access to capital when needed without the commitment or expense of an underwritten deal. For existing shareholders, this represents potential dilution of up to $8.7 million in preferred equity, though the company controls timing and isn't obligated to sell any shares.
The 10% dividend rate on these preferred shares is relatively high, suggesting the company may be paying a premium for capital access. The 3% sales commission is standard for such arrangements. Investors should monitor whether and how quickly the company taps this facility. Rapid or substantial sales could signal cash needs or operational challenges, while measured use might indicate prudent capital management. Watch for disclosure of actual sales in future quarterly filings.
Section-by-Section Diff
Event · Item 1.01 — Entry into a Material Definitive Agreement
Item 1.01 — Entry into a Material Definitive Agreement filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
The Company will pay the Sales Agent a commission of up to 3.0% of the gross sales price per share sold through it acting as Sales Agent.
The company will pay Ladenburg Thalmann up to 3% commission on gross sales proceeds from any preferred shares sold under the agreement. This is a standard ATM commission rate and represents the cost of accessing this flexible capital-raising mechanism.
Show 1 minor / wording change
Added in current filing · verify on EDGAR →
The issuance and sale, if any, of the Shares by the Company under the Sales Agreement will be made pursuant to the Company’s effective registration statement on Form S-3 (File No. 333-294548) filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 24, 2026, and declared effective as of April 1, 2026.
The ATM offering is being conducted under an existing shelf registration statement that became effective April 1, 2026. This means the company already obtained SEC approval for the offering framework and can now execute sales as needed without additional registration delays.
Event · Item 9.01 — Financial Statements and Exhibits
Star Equity entered an at-the-market equity offering agreement with Ladenburg Thalmann to sell shares on May 18, 2026.
Added in current filing · verify on EDGAR →
At Market Issuance Sales Agreement, dated May 18, 2026, by and between Star Equity Holdings, Inc. and Ladenburg Thalmann & Co. Inc.
Star Equity Holdings entered into an at-the-market issuance sales agreement with Ladenburg Thalmann on May 18, 2026. This type of agreement typically allows the company to sell shares directly into the market over time at prevailing prices, providing flexible access to capital. The company also filed a legal opinion from Baker & Hostetler regarding the validity of the shares to be issued.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 1, 2026 · How we verify