InsideArbitrage Event Driven Monitor – May 25, 2023

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

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Merger Arbitrage

“Correction: Premium subscribers may have received an alert regarding the acquisition of The Necessity Retail REIT (RTL) by Global Net Lease (GNL) in an all-cash deal. The deal is actually an all-stock deal and the alert was sent inadvertently when the wrong deal type was selected when adding the deal to our database. We fixed the deal type in the Merger Arbitrage Tool shortly after the alert was sent.”

1. The merger of Desktop Metal (DM) and Stratasys (SSYS) in an all-stock deal valued at approximately $1.8 billion. Under the terms of the agreement, Desktop Metal stockholders will receive 0.123 ordinary shares of Stratasys for each share of Desktop Metal stock.
2. Apexigen (APGN) to be acquired by Pyxis Oncology (PYXS) for $16 million in an all-stock deal. Under the terms of the agreement, for each share of Apexigen common stock, Pyxis Oncology will issue 0.1725 shares of its common stock.
3. The Necessity Retail REIT (RTL) to merge with Global Net Lease (GNL) for $3.7 billion in an all-stock deal. Under the terms of the Merger Agreement, RTL stockholders will receive 0.670 shares of GNL for each common share of RTL.
4. Xylem (XYL) has completed the acquisition of Evoqua Water Technologies (AQUA).
5. According to Reuters, Microsoft (MSFT) filed an appeal against Britain’s decision to block its takeover of Activision Blizzard (ATVI).
6. IVERIC bio (ISEE) and Astellas Pharma filed a notification and report form with the DOJ and the FTC under the HSR Act on May 24, 2023. The applicable waiting period will expire on June 23, 2023.

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

Deal in the works

1. According to Bloomberg, Stratasys (SSYS) is in talks to acquire Desktop Metal (DM) in an all-stock deal.
2. According to Reuters, Avid Technology (AVID) is exploring a potential sale.

Insider Purchases

1. The Baker brothers are back. Julian Baker, a Director of biotechnology company Acadia Pharmaceuticals Inc (ACAD), purchased 896,522 shares at an average price of $25.33 totaling $22.71 million. These shares were acquired indirectly through Baker Bros. Advisors, a biotech focused investment firm.
2. Bill Ackman, a Director of diversified real estate company Howard Hughes Corp (HHC), purchased 98,663 shares at an average price of $74.12 totaling $7.31 million. These shares were acquired indirectly through Pershing Square Capital.
3. Kelcy L. Warren, the Executive Chairman of oil & gas midstream company Energy Transfer LP (ET), purchased 400,000 shares at an average price of $12.78 totaling $5.11 million.
4. Pablo G. Legorreta, the CEO, Chairman of the Board of biotechnology royalties company Royalty Pharma PLC (RPRX), purchased 150,000 shares at an average price of $32.25 totaling $4.84 million.
5. Randolph Peeler, a Director of optical retail company National Vision Holdings, Inc. (EYE), purchased 40,470 shares at an average price of $25.65 totaling $1.04 million.
6. Michael R. Minogue, a Director of medical devices company Insulet Corp (PODD), purchased 3,300 shares at an average price of $304.75 totaling $1.01 million.
7. David M. Maura, the Executive Chairman And CEO of household & personal products company Spectrum Brands Holdings, Inc. (SPB), purchased 10,000 shares at an average price of $72.31 totaling $723,150.
8. Anthony P. Bihl, the Interim CEO of medical devices company Bioventus Inc. (BVS), purchased 125,000 shares at an average price of $2.33 totaling $290,987.
9. William Millard Choate, a Director of regional bank Ameris Bancorp (ABCB), purchased 7,490 shares at an average price of $33.38 totaling $250,023.
10. Peter I. Tumminello, a Director of oil & gas midstream company DT Midstream, Inc. (DTM), purchased 5,000 shares at an average price of $47.35 totaling $236,750.
11. Dana D. Behar, a Director of regional bank First Northwest Bancorp (FNWB), purchased 20,000 shares at an average price of $10.50 totaling $210,000.
12. Greg Scheu, a Director of electrical equipment & parts company Nvent Electric PLC (NVT), purchased 4,700 shares at an average price of $43.23 totaling $203,191.
13. Keith M. Rosenbloom, a Director of agricultural products company American Vanguard Corp (AVD), purchased 7,000 shares at an average price of $17.33 totaling $121,310.
14. Jim Crotwell, the Chief Risk Officer of regional bank Origin Bancorp, Inc. (OBK), purchased 3,000 shares at an average price of $29.75 totaling $89,250.
15. Alan J. Stock, a Director of regional bank ACNB Corp (ACNB), purchased 2,499 shares at an average price of $30.08 totaling $75,176.
16. Scott David Miller, a Director of human capital management software company Paycor HCM, Inc. (PYCR), purchased 3,000 shares at an average price of $22.19 totaling $66,570.
17. Jeffrey R. Thompson, a Director of regional bank Capitol Federal Financial, Inc. (CFFN), purchased 10,000 shares at an average price of $6.00 totaling $60,000.
18. Luke C. Brandenberg, the President and CEO of oil & gas company Granite Ridge Resources, Inc. (GRNT), purchased 10,000 shares at an average price of $5.67 totaling $56,700.
19. Craig D. Eerkes, a Director of regional bank Columbia Banking System, Inc. (COLB), purchased 2,381 shares at an average price of $21.01 totaling $50,025.
20. Ralph C. Derrickson, a Director of information technology services company Perficient Inc (PRFT), purchased 634 shares at an average price of $78.87 totaling $50,004.
21. James D. Dondero, the President of diversified REIT company Nexpoint Diversified Real Estate Trust (NXDT), purchased 3,545 shares at an average price of $10.13 totaling $35,911. He also purchased series A 441 preferred shares at an average price of $15.25.
22. Bryan T. Hipsher, the Chief Financial Officer of business data company Dun & Bradstreet Holdings, Inc. (DNB), purchased 4,000 shares at an average price of $9.88 totaling $39,525.
23. Andrew B. Nace, the Executive Vice President of titanium dioxide producer Kronos Worldwide Inc (KRO), purchased 4,000 shares at an average price of $8.31 totaling $33,221.
24. William Beale, the CEO of Bank Subsidiary of regional bank Blue Ridge Bankshares, Inc. (BRBS), purchased 3,000 shares at an average price of $8.98 totaling $26,926.

Stock Buyback Announcements

1. Quanta Services, Inc. (PWR) has authorized a new $500 million stock repurchase program through June 30, 2026. This represents around 2% of its market cap at announcement.
2. Waterstone Financial, Inc. (WSBF) authorized a share repurchase program pursuant to which the Company intends to repurchase up to 2,000,000 of its issued and outstanding shares, representing approximately 9.3% of its issued and outstanding shares of common stock.

Update:

1. Wix.com Ltd. (WIX) has completed the $300 million share repurchase program authorized by the Board in October 2022.
2. Clarivate Plc (CLVT) has approved the extension of its share repurchase authorization through December 31, 2024, and reduced the authorization from $1 billion to $500 million.

SPACs

1. Inflection Point Acquisition Corp. II (IPXXU) announced the pricing of an upsized $220 million IPO.

C-Suite Transitions

Appointments

1. BigCommerce Holdings (BIGC): appoints Daniel Lentz as Chief Financial Officer effective June 30, 2023, and Hubert Ban as Chief Accounting Officer effective June 8, 2023.
2. TREX (TREX): appoints Bryan Fairbanks as interim Chief Financial Officer.
3. Avery Dennison (AVY): appoints Deon Stander as President and Chief Executive Officer, effective September 1, 2023.
4. Cantaloupe (CTLP): appoints Jared Grachek as Chief Accounting Officer.

Departures

1. Arcutis Biotherapeutics (ARQT): Kenneth Lock Chief Commercial Officer resigns effective as of June 2, 2023.
2. Brainstorm Cell Therapeutics (BCLI): David Setboun Chief Operating Officer resigns effective as of May 31, 2023.
3. TREX Co (TREX): Dennis Schemm Chief Financial Officer resigns effective June 9, 2023.
4. Greenidge Generation (GREE): terminates  Terence Burke General Counsel effective as of May 31, 2023.
5. Cooper-Standard (CPS): Joanna M. Totsky Chief Legal and Transformation Officer resigns effective June 16, 2023.
6. Performance Food Group (PFGC): Christine Vlahcevic Chief Accounting Officer retires effective December 31, 2023.
7. BigCommerce Holdings (BIGC): Robert Alvarez Chief Financial Officer steps down effective June 30, 2023.
8. Edesa Biotech (EDSA): Kathi Niffenegger Chief Financial Officer intends to retire effective July 15, 2023.
9. Caci International (CACI): Travis B. Johnson Chief Accounting Officer resigns effective June 9, 2023.
10. Enveric Biosciences (ENVB): terminates Avani Kanubaddi President and Chief Operating Officer as a part of a reduction in workforce.
11. Pyxis Oncology (PYXS): Jay Feingold Chief Medical Officer resigns effective June 15, 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.