STOCKHOLDERS EQUITY

9 Months Ended

Mar. 30, 2014

Equity [Abstract]

STOCKHOLDERS EQUITY

NOTE O – STOCKHOLDERS’ EQUITY

The ARC Group Worldwide, Inc. Board of Directors authorized the repurchase of up to $250,000 of the Company’s common stock on October 9, 2013. The stock repurchase program does not obligate ARC to acquire any particular amount of stock. It also does not have an expiration date and may be limited or terminated at any time without notice. In the second quarter of fiscal year 2014, ARC repurchased 21,002 shares as Treasury Stock (giving effect of the 1.5:1 stock dividend paid on May 1, 2014) for a total of $93 thousand and accounted for these shares using the Cost Method.

The Company issued an equity grant of 363,640 (giving effect of the 1.5:1 stock dividend paid on May 1, 2014) shares of common stock to Mr. Jason Young, approved by the Board of Directors and Compensation Committee of the Board of Directors on August 19th, 2013 as inducement for Mr. Young to accept reappointment as Chief Executive Officer (the “Stock Grant”). The Compensation Committee had concluded that the value date of the Stock Grant would be determined by reference to the closing quoted price of the Company’s common stock on the NASDAQ Stock Market of the immediately preceding trading day, August 16, 2013, which was $1.928 per share (giving effect of the 1.5:1 stock dividend paid on May 1, 2014). For the first quarter 2014, stock-based compensation expense was recorded in the amount of $701 thousand within “Selling, general, and administrative costs” on the Condensed Consolidated Statement of Operations.

On September 25, 2013, pursuant to the terms of the FloMet Loan Termination Agreement, the promissory note representing the FloMet Loan terminated and the $272 thousand remaining principal upon the promissory note owed to the Company by Mr. Marten was cancelled.

The Company issued common shares to two of its’ Minority Interest Subscribers in exchange for all of their membership interest in the Company’s FloMet and General Flange & Fittings subsidiaries. The issuance of common stock took place in the first quarter of fiscal year 2014. The 0.60% interest in FloMet owned was exchanged for 66,612 shares of common stock of the Company for an acquisition price of $2.043 per share (giving effect of the 1.5:1 stock dividend paid on May 1, 2014). The 10% interest in General Flange & Fittings was exchanged for 82,410 shares of common stock of the Company for an acquisition price of $2.119 per share (giving effect of the 1.5:1 stock dividend paid on May 1, 2014).