InsideArbitrage Event Driven Monitor – November 16, 2022

  • November 16, 2022

Quick updates on the event-driven strategies we follow on InsideArbitrage.

Merger Arbitrage

  1. Abiomed (ABMD) and Johnson & Johnson (JNJ) each filed an HSR Notification with the FTC and the DOJ in connection with the purchase of shares in the offer and the merger, and the required waiting period will expire on December 7, 2022, unless earlier terminated by the FTC and the DOJ. Johnson & Johnson launched its tender offer for Abiomed; the offer will expire on December 13, 2022.
  2. CommerceHub completes the acquisition of ChannelAdvisor (ECOM).
  3. Cowen (COWN) announced that its stockholders approved the previously announced definitive agreement for Cowen to be acquired by TD Bank Group (TD).
  4. Broadcom (AVGO) filed a request for its planned acquisition of VMware (VMW) with the European antitrust regulator.
  5. Steel Partners (SPLP) terminated the merger deal with Steel Connect (STCN) after a majority of the parent’s outstanding shares failed to approve the agreement.
  6. 1Life Healthcare (ONEM) said that Amazon (AMZN) has agreed to provide it with up to $300M in financing.

Insider Purchases

  1. Martin E. Franklin, a Director of specialty chemicals company Element Solutions Inc (ESI), purchased 902,000 shares at an average price of $19.07 totaling $17.20 million.
  2. Joe E. Kiani, the CEO and Chairman of the Board of medical devices company Masimo Corp. (MASI), purchased 39,778 shares at an average price of $125.03 totaling $4.97 million
  3. Frank Russell Ellett, a Director of regional bank Atlantic Union Bankshares Corp (AUB), purchased 20,000 shares at an average price of $34.88 totaling $697,609.
  4. Aaron Rollins, the Chief Executive Officer of body sculpting company Airsculpt Technologies, Inc. (AIRS), purchased 150,000 shares at an average price of $3.11 totaling $466,500. Dennis Dean, the CFO of the company, also purchased 33,000 shares at an average price of $3.00 totaling $99,000. Caroline Chu, a Director of the company, purchased 30,000 shares at an average price of $3.09 totaling $92,700. Kenneth Higgins, another Director of the company, also purchased 15,000 shares at an average price of $3.09 totaling $46,350.
  5. Marc Montagner, a Director of telecom services company Cogent Communications Holdings, Inc. (CCOI), purchased 10,000 shares at an average price of $54.88 totaling $548,750.
  6. Barry E. Greene, the President and CEO of biotech company Sage Therapeutics, Inc. (SAGE), purchased 14,500 shares at an average price of $34.48 totaling $500,022.
  7. Raymond Debbane, a Director of the company formerly known as WeightWatchers, WW International, Inc. (WW), purchased 75,000 shares at an average price of $4.27 totaling $320,055. Jonas Fajgenbaum, another Director of the company, purchased 29,250 shares at an average price of $4.27 totaling $124,880. Denis F. Kelly, a third Director of the company, also purchased 10,000 shares at an average price of $4.23 totaling $42,300.
  8. Peter J. Kight, a Director of payment solutions provider Repay Holdings Corp (RPAY), purchased 65,000 shares at an average price of $7.41 totaling $481,650.
  9. Stephen T. Boswell, a Director of regional bank ConnectOne Bancorp, Inc. (CNOB), purchased 8,000 shares at an average price of $24.88 totaling $199,059.
  10. Gregory T. Lucier, the Director of dental products company Dentply Sirona Inc. (XRAY), purchased 6,000 shares at an average price of $31.45 totaling $188,700.
  11. Bradford D. Whitehurst, the EVP (former CFO) of midstream oil company Energy Transfer LP (ET), purchased 8,500 shares at an average price of $12.05 totaling $102,425.
  12. Ralph E. Faison, a Director of home automation company Arlo Technologies, Inc. (ARLO), purchased 23,800 shares at an average price of $4.20 totaling $99,960.
  13. John P. Bilbrey, a Director of animal healthcare company Elanco Animal Health Inc (ELAN), purchased 7,500 shares at an average price of $13.24 totaling $99,267.
  14. Gregory B. Sullivan, the Director of auto dealership Carvana (CVNA), purchased 8,000 shares at an average price of $10.00 totaling $80,000.
  15. Ryan Lockwood, the Chief Financial Officer of auto parts retailer CarParts.com, Inc. (PRTS), purchased 9,000 shares at an average price of $5.28 totaling $47,520. Barry Phelps, a Director of the company, also purchased 5,000 shares at an average price of $5.13 totaling $25,650.
  16. Roxanne M. Bernstein, the EVP & President, ACCO Brands N.A. of business and consumer products company ACCO Brands Corp (ACCO), purchased 10,000 shares at an average price of $5.64 totaling $56,399.
  17. Murray Stahl, a Director of Texas landowner Texas Pacific Land Corp (TPL), purchased 14 shares at an average price of $2,655.68 totaling $37,180.
  18. Alan Yu, the CEO and Chairman of the BOD of packaging company Karat Packaging Inc. (KRT), purchased 2,300 shares at an average price of $13.85 totaling $31,855.

SPACs

  1. Majic Wheels and OceanTech Acquisitions I Corp. (OTECentered into a definitive business combination agreement.

Stock Buyback Announcements

  1. Walmart Inc. (WMT) approved a new $20 billion share repurchase authorization replacing its existing authorization, which had approximately $1.9 billion remaining. This represents around 5.3% of its market cap at announcement.
  2. Valvoline Inc. (VVV) has approved a $1.6 billion share repurchase authorization, representing around 28% of its market cap at announcement.
  3. AerSale Corporation (ASLE) intends to purchase an aggregate of 1,500,000 shares of common stock directly from the selling stockholders. This represents around 3% of its market cap at announcement.
  4. O’Reilly Automotive, Inc. (ORLY) approved to increase the authorization amount under its share repurchase program by an additional $1.5 billion, raising the aggregate authorization under the program to $21.75 billion. This represents around 3% of its market cap at announcement.
  5. Berry Global Group, Inc. (BERY) has authorized an additional $700 million allocation to its existing share repurchase program, resulting in more than $1 billion of available capacity under the program. This represents around 11% of its market cap at announcement.

C-Suite Transitions

Appointments

  1. Chicken Soup for the Soul Entertainment (CSSE) appointed Jason Meier as the Company’s Chief Financial Officer effective November 15, 2022.
  2. Pennant Group (PNTG) announced that Jennifer L. Freeman, will act as interim CFO.
  3. Lulus Fashion Lounge Holdings (LVLU): Crystal Landsem, currently Co-President and Chief Financial Officer, has been appointed as Chief Executive Officer and David McCreight, Lulus’ current Chief Executive Officer, has been appointed as Executive Chairman, effective on March 6, 2023.
  4. Core Scientific (CORZ) appointed Todd DuChene to serve as the Company’s President and Chief Legal Officer, effective November 14, 2022.
  5. Aytu BioPharma (AYTU) appointed Christopher Brooke as Chief Operating Officer
  6. CURO Group Holdings (CURO) appointment of Douglas Clark as Chief Executive Officer
  7. Charah Solutions (CHRA) appointed Jonathan Batarseh, as Chief Executive Officer and President and appointed Joe Skidmore, as Chief Financial Officer

Departures

  1. FOXO Technologies (FOXO) announced that Jon Sabes and Steven Sabes have been terminated as the company’s Chief Executive Officer and Chairman and Chief Operating Officer.
  2. The Pennant Group (PNTG): Derek J. Bunker, Chief Investment Officer, submitted his resignation effective December 31, 2022.
  3. National Instruments Corporation (NATI) announced that Jason Green, would step down as Chief Revenue Officer and depart the company effective December 31, 2022.
  4. CURO Group Holdings (CURO): Donald Gayhardt Chief Executive Officer departs.
  5. Charah Solutions (CHRA): Scott Sewell has resigned as the company’s President and Chief Executive Officer

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