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  "documentTitle": "Box, Inc. (BOX)",
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  "presentationDate": "2021-08-06 00:00:00",
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      "text": "When combining this convertible preferred equity issuance with the previously completed convertible debt financing, in downside scenarios, the Board has now created $845 million in liabilities in exchange for raising unnecessary capital.",
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      "text": "We believe the adverse consequences of these financing transactions in downside scenarios far outweigh the benefits of their stated purpose.",
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      "text": "Box had also provided guidance that it expected to generate approximately $170 million of free cash flow in FY2021, with increasing free cash flow in future years.",
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      "text": "When combining this convertible preferred equity issuance with the previously completed convertible debt financing, in downside scenarios, the Board has now created $845 million in liabilities in exchange for raising unnecessary capital.",
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      "text": "Following the January 2021 capital raise, and even after completing two acquisitions, Box had more than $500 million of cash on its balance sheet.",
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      "text": "This leads us to seriously question the Board’s judgement and consider whether there were ulterior motives for these transactions, particularly the Preferred Financing and related self-tender announced in April.",
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      "text": "The Company has publicly admitted that it had no need for the $500 million it raised through the Preferred Financing.",
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      "kind": "quote",
      "text": "“…we didn’t need the primary capital, we obviously did the convertible note earlier in the year really to fund some of our very, disciplined M&A efforts, and we are generating pretty healthy levels of free cash flow…”",
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      "text": "“...we didn’t need the primary capital, we obviously did the convertible note earlier in the year really to fund some of our very, disciplined M&A efforts, and we are generating pretty healthy levels of free cash flow...” — CEO Aaron Levie, April 2021",
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      "kind": "source-note",
      "text": "Source: Company filings, Company transcripts, Bloomberg, Capital IQ. Note: Emphasis has been added by Starboard.",
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      "text": "There was no operational need for Box to raise additional capital",
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      "text": "Box Had No Operational Use for the Capital",
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