HAPNW -A Warrant Opportunity
The deadline for shareholder approval to acquire InfuSystem, Inc. has been extended from April 30 to June 27, 2007. Also extended is the date of the $1 million breakup penalty if the acquisition is not approved by the June 27th date.
Of particular interest in the 5/4/07 form 8-K, is the purchase on April 12, 2007 of 447,143 warrants at $0.70 each (cost $313,000) by the Board Chairman Sean McDevitt. This purchase was direct from HAPN while the warrants were selling for $0.22 on the open market.
Previously, on 12/28/06, Mr. McDevitt bought 624,000 warrants at $0.70 direct from the company (a $437,000 investment) when they could have been purchased on the open market at .25 - .30.
Mr. McDevitt is one of the two people who have provided a $3 million letter of credit to I-Flow as a guarantee that the acquisition will go through.
Also, according to the 3/30/07 form 10-K, Mr. McDevitt is one of two people who have agreed to ensure that shareholders will receive the full amount in the trust fund if no acquisition is made by HAPN.
The warrants are now selling in the .21 -22 range. If the acquisition goes through, they should be selling in the .60 - .90 range. If the acquisition does not go through, the warrants will probably become worthless. Mr. McDevitt has shown he is a believer and has consistently put his money on a successful acquisition.
Here is some biographical information on Sean McDevitt: He is currently a Managing Director at FTN Midwest Securities Corp. In 1999 he co-founded Alterity Partners, a boutique investment bank providing capital markets and merger and acquisition advisory services to high growth companies. Alterity Partners was acquired by FTN Midwest Securities Corp in September 2004. Mr. McDevitt was formerly a senior investment banker at Goldman Sachs & Co., where he led deal teams in a variety of technology and healthcare/biopharmaceutical transactions, including mergers and acquisitions, divestitures and IPO's. Mr. McDevitt worked in sales and marketing at Pfizer. He was a Captain in the U.S. Army Rangers and was decorated for combat in the Panama invasion. He is a member of the Council on Foreign Relations. He received his B.S. in Computer Science and Electrical Engineering from the U.S. Military Academy at West Point and an M.B.A. from Harvard Business School. |
