PROFILES OF COMPANIES FORCED TO LIQUIDATE – MARCH 28, 2008
China Mineral Acquisition Company (stock symbol: CMAQ), which raised $24 million when it went public on August 30, 2004, announced on February 23, 2006, that it was acquiring Sunwing Energy, Ltd., the China-based oil and gas subsidiary of Ivanhoe Energy. The company failed to close on the acquisition and announced on November 28, 2006 that its shareholders had approved the liquidation of the company. It also announced that the shareholders would receive a distribution approximately $5.45 per share. The units were originally priced at $6.00.
Millstream II Acquisition (stock symbol: MSMA), which raised $27.6 million when it went public on December 23, 2004, announced on June 12, 2006 that it was acquiring Specialty Surfaces International (d/b/a Sprinturf), a manufacturer of synthetic turf systems. The company failed to close on the acquisition and announced on April 17, 2007 that its shareholders had approved the liquidation of the company. The units were originally priced at $6.00. The founder of Millstream II Acquisition, Arthur Spector, took another blank check company, Millstream Acquisition, public on August 23, 2004, raising gross proceeds of $24.15 million. Millstream Acquisition was the first blank check company to go public, and the first blank check company to complete an acquisition.
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Coastal Bancshares Acquisition Corp. (stock symbol: CBAS), which raised $33.12 million when it went public on February 14, 2005, announced on April 6, 2006, that it was acquiring Intercontinental Bank Shares Corporation, a bank holding company with three branches in San Antonio, Texas and an office in Mexico City. On October 26, 2006, the company announced that its shareholders had not approved the transaction, and that its board of directors was recommending that the company be liquidated. In March 2007, the company distributed $5.50 to each of its non-insider shareholders and terminated its registration with the SEC. The securities have ceased trading. The units were originally priced at $6.00.
TAC Acquisition Corp. (stock symbol: TACA), which raised $132 million when it went public on June 29, 2005, announced on June 12, 2006 that it had reached an agreement to acquire AVIEL Systems, Inc., a provider of IT and management consulting solutions to the federal government in areas critical to national security, transportation and defense. The shareholders did not approve the acquisition and subsequently voted to liquidate the company. In February 2007, the company distributed $5.6941 to each of the non-insider shareholders. When it went public, the company indicated that it was going to focus its efforts on acquiring a company in the technology industry. The units were originally priced at $6.00.
Cold Spring Capital, Inc. (stock symbol: CDS), which raised $120 million when it went public on November 11, 2005, announced on November 3, 2006 that it had reached an agreement to acquire Sedona Development Partners LLC, a specialty real estate developer. The shareholders did not approve the acquisition and subsequently voted to liquidate the company. On May 10, 2007, the company distributed $5.74 to each of the non-insider shareholders. When it went public, the company indicated that it intended to focus on acquiring a company in the financial or real estate industries. The securities have ceased trading. The units were originally priced at $6.00.
Key Hospitality Acquisition Corporation (stock symbol: KHPA), which raised $51.6 million when it went public on October 24, 2005, announced on March 27, 2007 that it had reached an agreement to acquire Cay Clubs LLC, "...a developer and operator of premier destination resorts and properties." On October 3, 2007, the company announced that it was terminating the agreement because of the deterioration in the mortgage market and that the company would be liquidated. On December 11, 2007, the shareholders approved the distribution of $7.6876 per share. When the company went public, it disclosed that it intended to focus its efforts on acquiring a company in the hospitality industry. The units were originally priced at $8.00.
Grubb & Ellis Realty Advisors, Inc. (stock symbol: GAV), which raised $143,750,004 when it went public on February 27, 2006, announced on June 18, 2007, that it had reached an agreement to acquire three properties from its sponsor, Grubb & Ellis Company. As an incentive to obtain approval for the deal from its shareholders, the insiders agreed to sell 4,395,788 (77.6% of their total position) of their shares back to the company for a nominal sum. On February 28, 2008, the company announced that it had been unable to obtain the approval from its shareholders for the proposed transaction and that the company was going to liquidate. The common stock and warrants last traded at $6.02 and $.0006, respectively, giving the units, which last traded at $6.00, a value of $6.00. The units were originally priced at $6.00.
Oracle Healthcare Acquisition Corp. (stock symbol: OHAQ,which raised $120 million when it went public on March 2, 2006, announced on September 8, 2007 that it had singed a letter of intent to acquire a company that it never identified. On October 22, 2007, it announced that it had terminated the letter of intent and that the company was probably going to liquidate. On December 4, 2007, the company announced that it had signed a definitive agreement to acquire Precision Therapeutics and that it was not going to liquidate. On February 22, 2008, the company announced that as an incentive to its shareholders to approve the transaction that the shareholders of Precision Therapeutics had agreed to reduce their compensation by approximately 15% and that the insiders of Oracle had agreed to forfeit 50% of their stock. On March 4, 2008, the company announced that the merger agreement had been terminated and that while it intended to liquidate the company. The common stock and warrants last traded at $7.91 and $.01, respectively, giving the units, which last traded at $7.90, a value of $7.92. The units were originally priced at $8.00.
Good Harbor Partners Acquisition Corp. (stock symbols: GHBAA and GHBBB), which raised $58,316,500 when it went public on March 10, 2006, announced on September 14, 2007 that it had signed a letter of intent to acquire a company that it never identified. On November 15, 2007, the company announced that it had terminated the letter of intent and that the company was going to liquidate. When it went public, the company disclosed that it intended to focus its efforts on acquiring a company in the security industry. The Class A and Class B units were originally priced at $8.50 and $10.10, respectively.
North American Insurance Leaders, Inc. (stock symbol: NAO), which raised $115 million when it went public on March 23, 2006, announced on August 10, 2007 that it had reached an agreement to acquire Deep South Holding L.P., and insurance company with 2,000 independent agents doing business in 24 states. On March 25, 2008, the company announced that the acquisition had not been approved and that the company was going to liquidate. The common shares and warrants last traded at $7.88 and $.01, respectively, giving the units, which last traded at $7.80, a value of $7.89. The units were originally priced at $8.00.
Phoenix India Acquisition Corp. (stock symbol: PXIA), which raised $57,387,496 when it went public on March 31, 2006, announced on October 4, 2007, that it had reached an agreement to acquire a 65% interest Citius Power Limited, a company that had agreements to acquire wind energy assets in India. On March 4, 2008, the company announced that it was not going to be able to complete the acquisition of Source Global by April 4, 2008, and that it was going to seek the approval of its shareholders to distribute its cash, while at the same time retaining its corporate status so that it could raise new funding to close on the acquisition of the interest in Citius. The common shares and warrants last traded at $7.95 and $.03, respectively, giving the units, which last traded at $7.96, a value of $7.98. The units were originally priced at $8.00.
JK Acquisition Corp. (stock symbol: JKA), which raised $81.35 million when it went public on April 11, 2006, announced on September 7, 2006 that it had reached an agreement to acquire Multi-Shot LLC, an independent directional drilling services company with an established presence in most major producing onshore oil and gas basins in the United States. On January 31, 2008, the company announced that its shareholders had not approved the transaction and that it was going to review its strategic alternatives, including the possible liquidation of the company. The common shares and warrants last traded at $6.00 and $.0006, respectively, giving the units, which last traded at $5.82, a value of $6.00. The units were originally priced at $6.00.
Harbor Acquisition Corp. (stock symbol: HAC), which raised $82.8 million when it went public on April 25, 2006, announced on December 18, 2006 that it had reached an agreement to acquire Elmet Technologies, Inc., a company which provides innovative refractory metal solutions to OEMs serving such industries as data storage, semiconductor, medical, electronics and lighting. On February 1, 2008, Elmet Technologies terminated the agreement and on February 8, 2008, Harbor Acquisition announced that it was going to review its strategic alternatives, including the possible liquidation of the company. The common shares and warrants last traded at $5.89 and $.001, respectively, giving the units, which last traded at $5.83, a value of $5.89. The units were originally priced at $6.00.
H D Partners Acquisition Corporation (stock symbol: HDP), which raised $150 million when it went public on June 2, 2006, announced on May 30, 2007 that it had reached an agreement to acquire the National Hot Rod Association, the primary sanctioning body for the sport of drag racing in the United States with 140 member tracks. On January 31, 2008, the company announced that the acquisition had not been approved and that the company was going to liquidate. The common stock and warrants last traded at $7.95 and $.01, respectively, giving the units, which last traded at $7.87, a value of $7.96. The units were originally priced at $8.00. |
