A California investment company has taken a 7.8 percent stake in Monticello-based WSI Industries and may seek a controlling interest in the company.
Fremont, Calif.-based DPW Holdings Inc. disclosed in a late Thursday filing with the Securities and Exchange Commission that it had taken a greater than 5 percent interest in WSI. DPW said in the filing it is acquiring shares for investment purposes "and potentially with a view to acquiring a controlling interest."
WSI Industries does precision machining and contract manufacturing. For its most recent fiscal year ended Aug. 27, the company reported annual revenue of $30.6 million, a 13 percent decline from the prior fiscal year, and a net loss for the first time in eight years.
DPW Holdings recently changed its business model to that of a holding company and changed its name from Digital Power Corp. on Dec. 29. The new structure allows DPW to increase revenue through acquisitions and organic growth.
In announcing the company name change and strategy shift, DPW Holdings executive Chairman Milton "Todd" Ault III said the company can consider "spinoffs, IPOs of its subsidiaries and other strategic transactions designed to maximize shareholder value and enhance the company's ability to raise the capital it will need to further its long-term objectives."
The price of WSI shares rose 18.4 percent in after-hours trading Thursday to $7.15 per share, but by Friday morning shares were at $5.60 per share and they closed at $5.95.
DPW is building off its historical power solutions business. The holding company has interests in a asset-based lending company, a materials processing technology company, and a cryptocurrency mining business.
DPW shares closed Friday at $2.85, down 22 cents.
Patrick Kennedy • 612-673-7926
