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  "documentTitle": "Box, Inc. (BOX)",
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  "authorName": "Starboard Value",
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  "presentationDate": "2021-08-06 00:00:00",
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  "notes": "Uses a combination of bar charts to contrast the inefficiency of the financing scheme against the company's available cash position.",
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      "kind": "callout",
      "text": "The Company could have used its significant cash balance to repurchase shares",
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      "text": "If Box’s goal was truly to lower the share count and boost EPS, Box could have replicated the intended impact simply by repurchasing $11-$66 million of stock via the Company’s $600+ million cash balance.",
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      "text": "Net Share Repurchase Resulting From Financing & Self-Tender",
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      "text": "Cash as a Percentage of Market Cap",
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      "text": "If Box’s goal was truly to lower the share count and boost EPS, Box could have replicated the intended impact simply by repurchasing $11-$66 million of stock via the Company’s $600+ million cash balance.",
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      "text": "net share repurchase: 18.5mm",
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      "text": "Box hoped to minimally reduce the share count through the Preferred Financing scheme, which it could have easily done without raising $500 million of new capital.",
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      "text": "Source: Company filings, Capital IQ. Note: Market data as of 8/4/21. (1) Net share repurchase calculation includes estimated preferred financing fees which were calculated by applying the issuance fee rate of convertible debt to preferred equity. (2) Dutch auction tender range of $22.75-$25.75.",
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      "text": "It is clear that EPS accretion was not the main purpose of the Preferred Financing",
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      "text": "The Preferred Financing and Related Self-Tender Scheme Was Flawed",
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