InsideArbitrage Event Driven Monitor – October 5, 2022

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

Merger Arbitrage

  1. According to The Wall Street Journal, Elon Musk has offered to close his $44 billion deal to buy Twitter (TWTR) on the terms he originally agreed to.
  2. The acquisition of First Eagle Alternative Capital BDC (FCRD) by Crescent Capital BDC (CCAP) for $145.6 million or $4.86 per share in cash.
  3. The UK’s antitrust regulator set a deadline of March 1 to decide on Microsoft’s (MSFT) planned $69 billion acquisition of Activision (ATVI).
  4. Umpqua Holdings Corporation (UMPQ) approved a quarterly cash dividend of $0.21 per common share. The dividend is payable on October 28, 2022, to shareholders of record as of October 14, 2022.
  5. Yamana Gold (AUY) announced that the special meeting of stockholders will be on November 21, 2022.

Deals In The Works

  1. DXC Technology (DXC), confirmed that it has been approached by a financial sponsor regarding a potential acquisition of the company.
  2. Flexsteel (FLXS) announces that Jeanne McGovern, has been elected to the board effective September 30, 2022.

Insider Purchases

  1. Jonas Grossman, the CEO of the SPAC Chardan NexTech Acquisition 2 (CNTQ), purchased 485,000 shares at an average price of $10.36 for a total value of $5.02 million. Chardan NexTech Acquisition 2 agreed to merge with Dragonfly Energy, a manufacturer of deep cycle lithium-ion batteries earlier this year. It is interesting that this insider purchase comes just two days before SPAC investors vote on this business combination on October 6.
  2. Andrea Owen, the CEO of furniture company MillerKnoll (MLKN), purchased 60,606 shares at an average price of $16.88 for a total value of $1.02 million. MillerKnoll was created when the premium office furniture company Herman Miller acquired modern design company Knoll in July 2021 for $1.8 billion. After a 50% drop in the stock, the combined company currently has a market cap of less than $1.3 billion and an enterprise value of $3 billion.
  3. Arthur Suazo, the EVP of Leasing at office REIT Hudson Pacific Properties (HPP), purchased 4,347 shares at an average price of $11.11 for a total value of $48,295.
  4. Anne Smith, Chief Administrative Officer of furniture company Hooker Furnishings (HOFT), purchased 1,000 shares at an average price of $13.89 for a total value of $13,890.

Spinoffs

  1. 3M (MMM) announced that its third-quarter 2022 earnings conference call will be held on Tuesday, October 25, 2022.

SPACs

  1. Pathfinder Acquisition Corporation (PFDR) and Movella entered into a definitive business combination agreement.
  2. Aquaron Acquisition Corp. (AQUNU) announces pricing of $50 million IPO.
  3. Austerlitz I (AUS) and Austerlitz II (ASZ) both filed proxies stating that their sponsors are seeking shareholder approval to liquidate early.
  4.  Atlantic Avenue Acquisition (ASAQ), announced that it intends to dissolve and liquidate, effective as of the close of business on October 6, 2022.

Stock Buyback Announcements

  1. AutoZone, Inc. (AZO), announces the repurchase of an additional $2.5 billion of the company’s common stock in connection with its ongoing share repurchase program. This represents around 6% of its market cap at announcement.

C-Suite Transitions

Appointments

  1. Stitch Fix (SFIX) announced that Casey O’Connor, the company’s current Deputy General Counsel, will be succeeding Mr. Darling as Chief Legal Officer of the company, effective November 30, 2022.
  2. Weave Communications (WEAV) announced the appointment of Brett White as its Chief Executive Officer.
  3. YETI Holdings (YETI) appointed Michael McMullen, to serve as interim Chief Financial Officer.
  4. Quantum-Si Incorporated (QSI) announced that Jeffrey Hawkins has been appointed as Chief Executive Officer of the company, effective as of October 10, 2022.
  5. Cars.com (CARS) appointed Sonia Jain, as Chief Financial Officer effective October 17, 2022.
  6. Sangoma Technologies Corporation (SANG) announced that Larry Stock, the company’s former Chief Corporate Officer, has been appointed Chief Financial Officer effective October 3, 2022.
  7. Samsara (IOT) has appointed Steve Pickle as Chief People Officer, effective October 10, 2022.
  8. Proterra (PTRA) announced the appointment of Sara Dadyar as Chief People Officer.

Departures

  1. Scott Darling, Chief Legal Officer of Stitch Fix (SFIX) announced his intention to resign from the company, effective November 30, 2022.
  2. 1895 Bancorp of Wisconsin (BCOW) announced that Richard Hurd, Chief Executive Officer of the company has relinquished his role. Thomas Peterson, Senior Vice President and Chief Lending Officer of the company announced his intention to step down from his position as Chief Lending Officer.
  3. Scotts Miracle-Gro Company (SMG) reported that Cory J. Miller, Executive Vice President and Chief Financial Officer, departed his position as Executive Vice President and Chief Financial Officer of the company, effective as of August 29, 2022.
  4. YETI Holdings (YETI) announced that Paul Carbone has tendered his resignation as the company’s Chief Financial Officer effective as of October 28, 2022.
  5. Cars.com (CARS) announced that Jandy Tomy will step down as Interim Chief Financial Officer.
  6. Adamis Pharmaceuticals (ADMP) announced that Ronald B. Moss, M.D., the Chief Medical Officer notified the company that he was resigning as an officer and employee of the company effective October 14, 2022.

Disclaimer: I have a long position in Pfizer (PFE),. 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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