Are you looking for a January bounce?
Subject 57340
If JAZ doesn’t move into the black soon it is going to have liquidity problems next year.
I never liked this deal. Given that Jazz had already filed a registration statement with the SEC, it didn’t look like Amelio, Hancock and Wozniak had conducted a particularly thorough search for an acquisition candidate. They were lazy. On the plus side, they had to sell back 1,873,738 of their shares at $.0047 per share in order to get the transaction approved.
Message 23283897
It now looks like Amelio took a second hit.
Jazz Technologies, Inc. Announces Repurchase of 1.9 million Common Shares at $2.11 per Share
Monday December 10, 4:05 pm ET
NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Jazz Technologies (AMEX:JAZ - News) today announced that it has recently repurchased 1.9 million shares of its common stock in privately negotiated transactions at a price of $2.11 per share. These repurchases consist of the following:
Jazz repurchased on December 6, 2007, 1,819,793 shares of common stock at $2.11 per share from Acquicor Management LLC, an entity owned in part and controlled by Gilbert F. Amelio, Jazz's Chairman and Chief Executive Officer; 51,836 shares of common stock from John P. Kensey; and 51,836 shares of common stock from Harold L. Clark. Mr. Kensey and Mr. Clark are directors of Jazz. The $2.11 price paid by Jazz for these securities was the closing price on November 30, 2007, the date that agreement was reached on the repurchase.
These repurchases were all conditioned on the entire sales proceeds being applied to pay interest, principal and associated fees on loans made to Acquicor Management LLC, Mr. Kensey and Mr. Clark on February 14, 2007 by Context Opportunistic Master Fund, LP and Context Advantage Master Fund, LP. Acquicor Management LLC, Mr. Kensey and Mr. Clark used these loans in February of 2007 to fund the purchase of Jazz common stock shortly before Jazz's acquisition of Jazz Semiconductor. After application of these sales proceeds to payments on these loans, all interest payments for the remainder of the term of the loans have been fully prepaid, and the only remaining payments under these loans are principal payments by Acquicor Management LLC due in May 2009 totaling approximately $3.2 million.
Senior management and directors of Jazz, including Gilbert Amelio, Paul Pittman, Allen Grogan, Liad Meidar, Harold Clark, Jon Madonna and John Kensey remain significant shareholders and, as of December 7, 2007, beneficially own in the aggregate approximately 16.2% of Jazz's outstanding common stock.
Jazz has spent approximately $49.7 million to date under its previously announced stock and warrant repurchase program that is currently scheduled to expire on January 15, 2008. All the repurchases were made using cash on the balance sheet. As of December 7, 2007, the number of outstanding shares of Jazz's common stock (JAZ) was 18,834,475 and the number of outstanding warrants (JAZ-WS) was 33,033,013.
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