described in this prospectus and in our other public filings and public statements. Our actual results may not meet the guidance we have provided. If our operating or financial results do not meet our guidance or the expectations of investment analysts, our stock price may decline.
Future sales of our common stock, or the possibility or perception in the public markets that these sales may occur, could
depress our stock price.
Sales of a substantial number of shares of our common stock in the public market, or the perception that these sales could occur, could substantially decrease the market price of our common stock. Substantially all of the shares of our common stock are available for resale in the public market, other than shares held by our affiliates, which are subject to certain restrictions and limitations set forth in Rule 144 of the Securities Act. The resale of certain shares held by affiliates has been registered on a shelf registration statement. Registration of the sale of other shares of our common stock not currently registered would permit their sale into the market immediately. Upon registration of any of these shares for resale, the market price of our common stock could drop significantly if the holders of these shares sell them or are perceived by the market as intending to sell them.
We, our executive officers and directors have agreed, subject to certain exceptions, not to dispose of or hedge any of the shares of common stock or securities convertible into or exchangeable for shares of common stock during the period from the date of this prospectus supplement continuing through the date 90 days after the date of this prospectus supplement. The representatives of the underwriters may, in their sole discretion, release any of these shares from these restrictions. See Underwriting (Conflicts of Interest).
After the expiration of the lock-up period, shares subject to the lock-up agreements may be sold in the public market, subject to prior registration or qualification for an exemption from registration, including, in the case of shares held by affiliates, and not otherwise registered for resale, compliance with the volume restrictions and other securities laws. To the extent that any of these shareholders sell, or indicate an intent to sell, substantial amounts of our common stock in the public market after the contractual lock-ups and other legal restrictions on resale discussed in this prospectus supplement lapse, the trading price of our common stock could decline significantly.
Additional issuances of equity securities would dilute the ownership of our existing shareholders and could reduce our earnings
per share.
We may issue equity securities in the future in connection with acquisitions, strategic transactions or for other purposes. To the extent we issue substantial additional equity securities, the ownership of our existing shareholders would be diluted and our earnings per share could be reduced.
Our common stock is equity and is subordinate to our existing and future indebtedness.
Shares of our common stock are equity interests and do not constitute indebtedness. As such, shares of our common stock rank junior to all indebtedness and other non-equity claims on us, with respect to assets available to satisfy such claims.
Because we do not expect to pay any dividends on our common stock for the foreseeable future, our investors may never receive
a return on their investment.
We do not anticipate that we will pay any cash dividends to holders of our common stock in the foreseeable future. Instead, we plan to retain any earnings to maintain and expand our existing operations. In addition, our ability to pay cash dividends is currently limited by the terms of our existing loan facility, which restricts the payment of dividends on our capital stock, and any future credit facility may contain terms prohibiting or limiting the amount of dividends that may be declared or paid on our common stock. Accordingly, investors must rely on sales of their common stock after price appreciation, which may never occur, as the only way to realize any return on their investment.
If securities or industry analysts do not publish, or cease publishing, research or reports about us, our business or our market, if
they publish negative evaluations of our stock, or if we fail to meet the expectations of analysts, the price of our stock and
trading volume could decline.
The trading market for our common stock will be influenced by the research and reports that industry or securities analysts may publish about us, our business, our market or our competitors. If few analysts maintain coverage of us, or if one or more of the analysts covering our business downgrade their evaluation of our stock, the price of our stock could decline. If one or more of these analysts cease to cover our stock, we could lose visibility in