InsideArbitrage Event Driven Monitor – January 18, 2023

  • January 18, 2023

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

Merger Arbitrage

  1. The acquisition of Neovasc (NVCN) by ShockWave Medical (SWAV) for $100 million. Under the terms of the agreement, Neovasc shareholders will receive US$27.25 per share in cash, plus deferred payments of up to approximately US$47 million on the achievement of future regulatory milestones in the form of a contingent value rights.
  2. According to Reuters, Microsoft (MSFT) is likely to receive an EU antitrust warning about its $69 billion bid for Activision Blizzard (ATVI), that could pose another challenge to completing the deal.
  3. IAA, Inc. (IAA) announced that the special meeting of stockholders will be on March 14, 2023.
  4. Albertsons Companies (ACI) announced that the temporary restraining order preventing the payment of the Special Divided has been lifted after the State of Washington’s Supreme Court denied a motion by the Attorney General of the State of Washington. Albertsons will immediately begin the process of paying the Special Dividend and amounts will be distributed as soon as practicable to stockholders of record as of the close of business on October 24, 2022.
  5. According to Reuters, Rogers Communications (RCI) said in a fling that the acquisition of Shaw Communications (SJR) has been delayed long enough and must be allowed to proceed despite the competition bureau’s opposition.
  6. Weber (WEBR) filed its preliminary information statements, in which it stated that following the execution of the Merger Agreement, the company and BDT Capital Partners entered into the HSR Waiver Letter, dated January 10, 2023, whereby each party confirmed the waiver of certain closing conditions.
  7. Maverix Metals (MMX) announced that the Ontario Superior Court of Justice has granted a final order approving the previously announced acquisition of Maverix by Triple Flag Precious Metals (TFPM). The transaction is expected to be completed on January 19, 2023.
  8. Elevate Credit (ELVT) announced that the special meeting of stockholders will be on February 15, 2023.

Deals In The Works

  1. Jim Ratcliffe’s company INEOS has formally entered the bidding process to buy Premier League soccer club Manchester United (MANU), a spokesperson for the chemical firm.
  2. J. Hale Hoak of Hoak & Co requests that Natural Gas Services Group (NGS) call off its permanent CEO search, consider adding directors to its Board, explore a sale or merger of the company and use debt to fund growth opportunities.
  3. NI (NATI) confirmed that it has received a proposal from Emerson to acquire the company for $53 per share in cash, following a prior proposal from Emerson to acquire the company for $48 per share.

You can check out new deals, all deal updates and spreads on active deals in our Merger Arbitrage Tool for premium members here.

Insider Purchases

  1. Michael T. Kerr, a Director of oil and natural gas E&P company EOG Resources Inc. (EOG), purchased 20,000 shares at an average price of $130.49 totaling $2.61 million.
  2. Noah G. Levy, a Director of biopharmaceutical company Merrimack Pharmaceuticals Inc. (MACK), purchased 100,000 shares at an average price of $11.90 totaling $1.19 million.
  3. Wes Cummins, the CEO and Chairman of data center company Applied Blockchain, Inc. (APLD), purchased 75,000 shares at an average price of $2.17 totaling $162,750.
  4. Adam D. Goldstein, the CEO of aircraft manufacturing company Archer Aviation Inc. (ACHR), purchased 39,526 shares at an average price of $2.54 totaling $100,238. The CFO and two other Directors also purchased shares.
  5. David V. Goeddel, a Director of biotech company NGM Biopharmaceuticals Inc. (NGM), purchased 5,378 shares at an average price of $4.95 totaling $26,603. These shares were purchased indirectly through The Column Group LP.
  6. Murray Stahl, a Director of Texas landowner Texas Pacific Land Corp (TPL), purchased 21 shares at an average price of $2,125.29 totaling $44,631.
  7. Thomson F. Leighton, the CEO of security software and CDN services provider AKAMAI TECHNOLOGIES INC (AKAM), purchased 282 shares at an average price of $88.86 totaling $25,059. He has been buying shares recently under an established 10b5-1 plan.

Spinoffs

  1. Jefferies Financial Group (JEF) and Vitesse Energy (VTS) announced the completion of the distribution by Jefferies of all the outstanding shares of the common stock of Vitesse held by Jefferies.

SPACs

  1. Spectaire announced entry into a definitive agreement to go public via a business combination with Perception Capital Corp. II (PCCT).

Stock Buyback Announcements

  1. Heritage Insurance Holdings, Inc. (HRTG) authorized a new share repurchase plan of $10 million, commencing upon the December 31, 2022 expiration of the prior $25 million share repurchase program. This represents around 18% of its market cap at announcement.
  2. Forza X1, Inc. (FRZA) has approved a new $1 million stock repurchase program representing around 6% of its market cap at announcement.

C-Suite Transitions

Appointments

  1. CorEnergy Infrastructure Trust (CORR): appoints Robert L Waldron as President and will continue to serve as Chief Financial Officer.
  2. Frequency Electronics (FEIM): appoints Dr. Tom McClelland as President and Chief Executive Officer.
  3. CYREN (CYRN): appoints Jeffrey Dauer as Chief Financial Officer and Chief Accounting Officer.
  4. Kingstone Cos (KINS): Jennifer Gravelle has joined as its Chief Financial Officer effective as of January 17, 2023
  5. International Money Express (IMXI): appoints Christopher D. Hunt as the acting Chief Operating Officer.
  6. Limbach Holdings (LMB): appoints Michael M. McCann, current Executive Vice President, and Chief Operating Officer, as President and Chief Executive Officer on March 28, 2023.
  7. DMC Global (BOOM): appoints Michael Kuta, current Chief Financial Officer, and director David Aldous as interim co-President and Chief Executive Officers

Departures

  1. Lakeland Financial (LKFN): Michael E. Gavin, Executive Vice President, Chief Credit Officer retires on January 27, 2023.
  2. SEMrush Holding (SEMR): Delbert Humenik, Chief Revenue Officer retires effective as of February 15, 2023.
  3. Lesaka Technologies (LSAK): Alex M.R. Smith will resign from his position as Chief Accounting Officer, effective as of March 1, 2023.
  4. Citizens Holding Company (CIZN): Gregory L. McKee will retire as the President and Chief Executive Officer effective January 31, 2023.
  5. iBio (IBIO): Robert Lutz, the Chief Financial and Business Officer resigned as an executive officer of the company, effective February 10, 2023.
  6. Westwater Resources (WWR): announced that Chad M. Potter, former President, and Chief Executive Officer departed effective January 16, 2023.
  7. Limbach Holdings (LMB): Charles (Charlie) A. Bacon, III  would step down as President and Chief Executive Officer effective March 28, 2023.
  8. DMC Global (BOOM): Kevin Longe has stepped down as President and Chief Executive Officer.

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.