Floyd George Video’s New York Stock Drop: ‘We Are All Victims’
The New York-based video streaming company is seeking to reduce its $1 billion debt to $800 million by refinancing its debt, according to a filing on Wednesday.
The company had $2.3 billion in cash and marketable securities at the end of September, up from $1.8 billion at the start of the year, according the filing.
The filing said it was pursuing a combination of convertible and non-convertible debt and noncash asset sales.
The debt-for-equity ratio is about 3.5 percent, down from 6.5 in July, and the market-cap has dropped by about 15 percent, the filing said.
“We are all victims,” CEO Floyd George said in a statement.
“The company is facing tremendous headwinds and a very challenging environment, and we need to be careful and deliberate in how we deploy our resources.
We need to remain focused on our core mission, which is to deliver the highest quality and value to our customers.”
Floyd George’s stock plunged by about 10 percent to about $4.30, after the company said it had made a $3 million investment in the U.S. video-streaming company.
George, 57, has been CEO of the company since its founding in 2005.
The deal is expected to close by the end, according a person familiar with the matter.
The stock fell by about 3 percent to $4,200.
George has been vocal about his criticism of President Donald Trump and his administration.
The New Yorker and other media outlets have reported on the company’s use of private investigators to dig up dirt on Trump and the Republican-controlled House Oversight and Government Reform Committee, which subpoenaed George last year for more than 100 emails he had provided to his wife.
The FBI has also been probing the allegations against George, who was fired by the company in January for lying to federal investigators.
The Wall Street Journal reported on Tuesday that a former Trump aide has accused George of sending messages to a former colleague during the 2016 campaign.
“Floyd George is a criminal and a traitor,” the former Trump official told the newspaper.
The White House did not immediately respond to a request for comment on Wednesday afternoon.