MXI Capital Management???

I am trying to work out how the board decided on their recent set of capital activities?

They sold off some assets and declared a dividend of $0.625 per share. This was paid in late December and was taxable to the shareholders and was a capital return of something like $23M.

Shareholders were invited to reinvest their dividend in late December at a value of approx $3.07 per share.

While this was happening the board was busy working on an acquisition of a trucking business. So here we are in January a few weeks later and the board now needs to RAISE $26M, which they certainly knew in December! And to top it off they invite in their bankers and offer them shares at $2.50. While shareholders can participate up to about $10M this would likely be done with after tax money from the dividend and with the dilutive effect from the institutional raise.

Whatever were they thinking? This is at best very clumsy and inefficient planning from the board and is certainly a wealth transfer from shareholders to the bankers. Add to this some questions about the operational controls that led to the poorly explained "cyber incident" and MXI appears to me to be a riskier investment than had originally thought. Why not just retain the dividend in the first place, avoid the dividend taxes, avoid the need for a raise and the dilution and the share price compression.

I am sufficiently annoyed with the poor capital management that have not even studied the acquisition yet.

Perhaps the Chair will provide an explanation and perhaps I will reevaluate whether remain as a shareholder in MXI.