InsideArbitrage Event Driven Monitor – December 14, 2022

  • December 14, 2022

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

Merger Arbitrage

  1. BTRS Holdings (BTRS) announced that its stockholders voted to approve the definitive merger agreement with an affiliate of EQT X Fund.
  2. On December 13, 2022, Archaea Energy (LFG) announced that its stockholders voted to approve the definitive merger agreement with BP p.l.c. (BP).
  3. UserTesting (USER) announced that the  “go-shop” period expired on December 10, 2022.
  4. Brookline Bancorp (BRKL) and PCSB Financial Corporation (PCSB) announced that the deadline for stockholders of PCSB to elect the form of consideration that they wish to receive in PCSB’s pending merger with Brookline has been extended to December 20, 2022.
  5. According to Reuters, Microsoft (MSFT) President Brad Smith said that the company had offered to sign a legally-binding consent decree with the U.S. Federal Trade Commission to provide “Call of Duty” games to rivals including Sony and others for a decade.
  6. According to Reuters, the attorneys general of California, Illinois and Washington D.C., said they would appeal a federal court’s refusal to temporarily prevent Albertsons Companies (ACI) from paying a $4 billion dividend to shareholders.
  7. Bloomberg reported that Rogers Communications’ (RCI) deal with Shaw Communications (SJR) is crawling toward the finish line. The legal battle over deal will be settled within weeks, possibly days.

Insider Purchases

  1. Anthony Noto, the CEO of fintech company SoFi Technologies, Inc. (SOFI), purchased 1,134,065 shares at an average price of $4.42 totaling $5 million.
  2. Jeffrey M. Boromisa, a Director of footwear & accessories company Wolverine World Wide, Inc. (WWW), purchased 100,000 shares at an average price of $10.49 totaling $1.05 million. The CEO and CFO also purchased 7,500 and 2,500 shares respectively.
  3. Joseph D. Russell, the President and CEO of self storage REIT Public Storage (PSA), purchased 2,500 shares at an average price of $297.65 totaling $744,137.
  4. Mark Samuel Hoplamazian, a Director of apparel manufacturing company V F CORP (VFC), purchased 17,500 shares at an average price of $28.04 totaling $490,712.
  5. Michael Johnson, the Chairman & interim CEO of multi-level marketing company Herbalife Nutrition, LTD. (HLF), purchased 19,675 shares at an average price of $12.69 totaling $249,646. A Director and the General Counsel also purchased 7,800 and 2,500 shares respectively.
  6. Christopher O. Blunt, the President & CEO of life insurance and annuities company F&G Annuities & Life, Inc. (FG), purchased 10,000 shares at an average price of $18.30 totaling $182,950. F&G was spun out of Fidelity National Financial (FNF) on December 1, 2022.
  7. Susan P. Kennedy, a Director of Southern California landowner Cadiz, Inc. (CDZI), purchased 75,000 shares at an average price of $2.22 totaling $166,500. Carolyn Webb de Macías, a Director of the company, also purchased 4,400 shares at an average price of $2.26 totaling $9,944.
  8. Dean P. Freeman, the Chief Financial Officer of agricultural inputs company Benson Hill, Inc. (BHIL), purchased 59,230 shares at an average price of $2.53 totaling $150,030.
  9. Richard W. Baker, a Director of regional bank Guaranty Bancshares (GNTY), purchased 3,494 shares at an average price of $34.49 totaling $120,508.
  10. Michael J. Gerdin, the Chief Executive Officer of trucking company Heartland Express, Inc. (HTLD), purchased 7,475 shares at an average price of $15.99 totaling $119,522.
  11. Alan Yu, the CEO and Chairman of the BOD of packaging & containers company Karat Packaging Inc. (KRT), purchased 7,000 shares at an average price of $13.95 totaling $97,636.
  12. Mary Jane King, a Director of regional bank Enterprise Bancorp, Inc. (EBTC), purchased 2,400 shares at an average price of $29.98 totaling $71,952.
  13. James Darrell Thomas, a Director of auto parts company Dorman Products, Inc. (DORM), purchased 700 shares at an average price of $84.78 totaling $59,343.
  14. Kimberly C. Dockery, the Chief of Staff, EVP of regional bank Colony Bankcorp (CBAN), purchased 4,000 shares at an average price of $13.33 totaling $53,320.
  15. Murray Stahl, a Director of Texas landowner Texas Pacific Land Corp (TPL), purchased 20 shares at an average price of $2,510.26 totaling $50,205.
  16. Nicholas Bustle, the EVP and Chief Lending Officer of regional bank USCB Financial Holdings, Inc. (USCB), purchased 3,320 shares at an average price of $12.79 totaling $42,470.
  17. James M. Garnett, a Director of regional bank Bankwell Financial Group, Inc. (BWFG), purchased 1,422 shares at an average price of $29.00 totaling $41,238.
  18. Heidi M. Hoeller, a Director of regional bank NBT Bancorp, Inc. (NBTB), purchased 750 shares at an average price of $42.48 totaling $31,859.
  19. Snehal Patel, the CEO and CFO of biotechnology company Greenwich LifeSciences, Inc. (GLSI), purchased 2,000 shares at an average price of $13.11 totaling $26,220.

SPACs

  1. Lifezone Metals entered into a definitive agreement for a business combination with GoGreen Investments (GOGN).
  2. Wellous Group Limited and Kairous Acquisition Corp. Limited (KACL) entered into a definitive merger agreement that will result in Wellous becoming a publicly listed company.
  3. AEON Biopharma and Priveterra Acquisition Corp. (PMGM) entered into a definitive business combination agreement.
  4. Fifth Wall Acquisition Corp. III (FWAC) entered into a definitive business combination agreement with Mobile Infrastructure Corp.
  5. Venus Acquisition Corporation closed the previously announced business combination with VIYI Algorithm. As part of the transaction, the company changed its name to “MicroAlgo Inc.” As a result, the company expects that its ordinary shares will begin trading on The Nasdaq Capital Market under the ticker symbol (MLGO), starting on or about December 13, 2022.
  6. ZyVersa Therapeutics (ZVSA) and Larkspur Health Acquisition Corp. announced the closing of their previously announced business combination.

Stock Buyback Announcements

  1. Southside Bancshares, Inc. (SBSI) has increased its authorization by an additional 1 million shares, for a total authorization to repurchase up to 2 million shares of the company’s common stock. This represents around 3% of its market cap at announcement.
  2. Pennant Group (PNTG) announced a share repurchase program but the size of repurchase has not been disclosed.

Update:

  1. LL Flooring Holdings, Inc. (LL) intends to recommence share repurchases in 2023 under the company’s current share repurchase authorization.

C-Suite Transitions

Appointments

  1. ASGN (ASGN): Rose Cunningham was promoted to the position of Chief Accounting Officer.
  2. Digital Realty Trust (DLR): appoints Andrew P. Power, currently the company’s President and Chief Financial Officer, to serve as the Chief Executive Officer.
  3. The Honest Company (HNST): appoints Carla Vernón as the company’s Chief Executive Officer, effective January 9, 2023.
  4. Aveanna Healthcare Holdings (AVAH): appoints Jeff Shaner, its current Chief Operations Officer, to serve as CEO effective December 31, 2022.
  5. QualTek Services (QTEK): appoints Matthew J. McColgan, as Chief Financial Officer
  6. Cambridge Bancorp (CATC): promotes Steven J. Mead as Chief Commercial Banking Officer and Peter Halberstadt as Chief Credit Officer.
  7. vTv Therapeutics (VTVT): appoints Steven Tuch as Chief Financial Officer.

Departures

  1. Jack in the Box (JACK): announced that Tim Mullany, Chief Financial Officer, will be leaving the Company effective February 2, 2023.
  2. Accelerate Diagnostics (AXDX): Ron Price Chief Commercial Officer, Americas notified of his decision to retire.
  3. Digital Realty Trust (DLR): approved the termination of A. William Stein as Chief Executive Officer
  4. Aveanna Healthcare Holdings (AVAH): announced that its Chief Executive Officer Anthony H. Strange resigns, effective December 31, 2022, and Rodney Windley informed the Board of his intention to retire as Executive Chairman of the Board
  5. LianBio (LIAN): announced that Debra Yu, President and Chief Strategy Officer, has decided to resign, effective January 1, 2023.
  6. Cambridge Bancorp (CATC): announced the retirement of Martin Millane, Chief Lending Officer, expected to occur in February of 2023 and Thomas J. Fontaine, Chief Banking Officer resigns.
  7. Yellow Corporation (YELL): James Faught, Chief Accounting Officer was terminated, effective immediately, upon the elimination of the Chief Accounting Officer position.
  8. The Honest Company (HNST): Nick Vlahos resigns as Chief Executive Officer effective January 9, 2023.

Disclaimer: 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.