InsideArbitrage Event Driven Monitor – September 30, 2022

Quick updates on all six event-driven strategies we follow on InsideArbitrage.

Merger Arbitrage

  1. TransGlobe Energy Corporation (TGA) with the consent of VAALCO Energy (EGY) postponed the special meeting of shareholders from September 29, 2022, to October 5, 2022.
  2. VAALCO’s (EGY) stockholders approved the proposed combination with TransGlobe Energy Corporation (TGA).
  3. Biohaven Pharmaceutical Holding Company (BHVN) announced that it has received shareholder approval to be acquired by Pfizer (PFE).
  4. According to Reuters, The Federal Communications Commission asked for further information pertaining to Tegna’s (TGNA) planned sale to Standard General.
  5. According to The Wall Street Journal, Twitter (TWTR) Jack Dorsey tried to facilitate Elon Musk’s relationship with Twitter’s chief executive officer a day after the social-media platform accepted the billionaire’s $44 billion takeover bid, according to text messages that were made public on Thursday.
  6. According to The Wall Street Journal, John Kirby, Spirit’s (SAVE) vice president of network planning, testified in federal court in Boston that the alliance between American Airlines Group  (AAL) and JetBlue Airways (JBLU) in the Northeast could eventually expand, and could inspire other large airlines to try to strike their own partnership deals, limiting competition in an already consolidated industry.
  7. Turquoise Hill (TRQ) announced receipt of Interim Order for proposed arrangement with Rio Tinto (RIO).

Insider Purchases

  1. James Dondero, President of diversified REIT Nexpoint Diversified Real Estate Trust (NXDT), purchased 49,422 shares at an average price of $12.82 for a total value of $633,590. He purchased these shares through an employee plan.
  2. Jefrey Gould, the CEO of apartment REIT BRT Apartments (BRT), picked up 3,832 shares at an average price of $21.16 for a total value of $81,083.
  3. Jeffery Eberwein, the CEO of recruiting solutions company Hudson Global (HSON), purchased 1,500 shares at an average price of $33.67 for a total value of $50,500. He purchased these shares through a 10b5-1 plan and his consistent buying has pushed his ownership to nearly 7.5%. Bucking current market trends, the company has doubled in value over the last year.
  4. Brendan Maiorana, the CFO of office REIT Highwoods Properties (HIW), purchased 1,500 shares at an average price of $27.21 for a total value of $40,813.

Spinoffs

  1. Encompass Health (EHC) announced it will report results for its third quarter on October 26, 2022

SPACs

  1. TH International Limited (THCH), the exclusive operator of Tim Hortons coffee shops in China has completed its business combination with Silver Crest Acquisition Corporation (SLCR).
  2. Consumer Direct Holdings, a self-directed provider of in-home personal care that supports aging adults and individuals with disabilities and DTRT Health Acquisition Corp. (DTRT) announced a definitive agreement for a business combination that will result in CDH becoming a public company.
  3. SHF Holdings (SHFS), formerly known as Northern Lights Acquisition Corp. (NLIT), completed its previously announced acquisition of SHF, LLC.
  4. YishengBio Co., a global biopharmaceutical company dedicated to discovering, developing, manufacturing and commercializing new generations of vaccines and therapeutic biologics for infectious diseases and cancer, and Summit Healthcare Acquisition Corp. (SMIH) entered into a definitive agreement for a business combination.
  5. Liberty Media Acquisition Corporation (LMACA) filed a preliminary proxy statement relating to a special meeting of stockholders to approve an amendment to LMAC’s certificate of incorporation which would, if implemented, allow LMAC to unwind and redeem all of its outstanding public shares prior to December 30, 2022, in advance of the contractual termination date of January 26, 2023.
  6. Qomolangma Acquisition Corp. (QOMO) priced its initial public offering of 5,000,000 units at $10.00 per unit.
  7. dMY Squared Technology Group (DMYY) announced the pricing of its initial public offering of 6,000,000 units, at a price of $10.00 per unit.

Stock Buyback Announcements

  1. Guidewire Software (GWRE) announced a $200 million accelerated share repurchase program with Morgan Stanley & Co, as part of the previously announced $400 million share repurchase authorization,
  2. MINISO Group Holding Limited (MNSO) announced a $100 million share repurchase program representing around 6.3% of its market cap at announcement.
  3. Ready Capital Corporation (RC), announced an additional $25.0 million share repurchase program bringing the total amount authorized under the program to $50.0 million. This additional authorization represents around 2% of the company’s market cap.

C-Suite Transitions

Departures

  1. Randy Greben, Chief Financial Officer of Blue Apron (APRN) resigns.
  2. Maureen Short, Executive Vice President – Chief Financial Officer of Rent-A-Center (RCII) departed the company.
  3. Enhabit (EHAB) announced that Chad K. Knight, General Counsel, will be stepping down from his position effective November 4, 2022.
  4. As part of an initiative to refine its commercial operating model, Paya Holdings (PAYA) eliminated the role of Chief Commercial Officer. In connection with such elimination, Michele Shepard departed her role as Chief Commercial Officer.
  5. Brookline Bancorp (BRKL) announced that effective November 1, 2022, Robert M. Rose, will be retiring as Chief Credit Officer of the company.
  6. ChargePoint Holdings (CHPT) announced that Colleen Jansen has resigned as the company’s Chief Marketing Officer.
  7. Moderna (MRNA) announced that Juan Andres, the company’s Chief Technical Operations and Quality Officer, will transition into a new role as President, Strategic Partnerships and Enterprise Expansion of the company.

Appointments

  1. Rent-A-Center, Inc. (RCII) announced that Fahmi Karam, will join the company as Executive Vice President – Chief Financial Officer.
  2. BCB Bancorp (BCBP) announced that Jawad Chaudhry was appointed as Chief Financial Officer of the company.
  3. Phio Pharmaceuticals (PHIO) approved the appointment of Robert J. Bitterman, Chairman of the company’s Board, to serve as the Company’s interim Executive Chairman, effective immediately.
  4. Blue Apron (APRN) appointed Mitchell Cohen to serve as interim Chief Financial Officer.
  5. Moderna, (MRNA) announced that Dr. Jerh Collins, Ph.D., will assume the role of Chief Technical Operations and Quality Officer effective January 1, 2023.

Disclaimer: I have long positions in Pfizer (PFE), Biohaven (BHVN), Tegna (TGNA), Twitter (TWTR) and Spirit Airlines (SAVE). Please do your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.

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