Phil Frohlich’s Prescott Group Capital Management has disclosed owning an aggregate 3.94 million shares of 4Licensing Corp (OTCMKTS:FOUR). The position consists of 2.41 million shares of common stock and 1.53 million shares of common stock issuable upon the exercise of presently convertible common stock purchase warrants. The stake represents about 25.9% of the issued and outstanding shares of common stock of 4Licensing Corp (OTCMKTS:FOUR).
4Licensing Corp (OTCMKTS:FOUR) is a licensing company specializing in youth oriented and specialty markets. Through its subsidiaries, the company licenses merchandising rights to popular children’s television series, properties and product concepts, builds brands through licensing, develops ideas and concepts for licensing, and plans to forge new licensing relationships in the sports industry, as well as developing private label goods to be sold to retail or directly to consumers. The company has a market cap of $21.9 million.
Prescott Group Capital Management was founded by Phil Frohlich in 1992. The Oklahoma-based hedge fund has around $500 million in assets under management and focuses on small and mid-cap stocks. The total value of the fund’s equity portfolio jumped to $526.4 million in the fourth quarter of 2013 from $470.5 million disclosed in the third quarter, according to its latest 13F.
Air Transport Services Group Inc. (NASDAQ:ATSG) was Prescott Group Capital’s largest holding, in which it revealed ownership of 5.79 million shares. It is followed by Nature’s Sunshine Prod. (NASDAQ:NATR), in which the fund holds 1.87 million shares. Silicon Graphics International Corp (NASDAQ:SGI) is the third-largest holding in which the Prescott Group Capital revealed ownership of 1.75 million shares.