What's Going On With The Children's Place Stock?

Children’s Place, Inc. PLCE shares are racing higher Thursday after the company revealed that it has received notification from Mithaq Capital that they own approximately 54% of Children's Place shares,

The Details:

Children's Place stated in an SEC filing that it has received correspondence from Snowball Compounding Ltd. and parties related to Mithaq Capital notifying the company that they own approximately 54% of the company's outstanding shares and intend to nominate 11 persons to stand for election to The Children's Place's board of directors at the company's 2024 annual meeting of shareholders. 

The Children's Place stated it intends to accept Mithaq's request to enter into discussions regarding the provision of financing to assist with the company's liquidity needs. 

The Children's Place stated that Mithaq's unsolicited acquisition of shares has triggered a change of control thereby causing an event of default under the company's amended and restated credit agreement. 

The Children's Place said it is in discussions with its lenders to seek a waiver of the event of default.

According to data from Benzinga Pro, 24.63% of Children's Place shares are being sold short, which when combined with heavy trading volume, may be contributing to the stock's large move. 

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PLCE Price Action: According to Benzinga Pro, Children's Place shares are up 70% at $24.69 at the time of publication.

Image: Michal Jarmoluk from Pixabay