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Technology Stocks : Blank Check IPOs (SPACS) -- Ignore unavailable to you. Want to Upgrade?

To: Glenn Petersen who wrote (489)	4/26/2006 7:17:26 PM
From: SG	Read Replies (1) \| Respond to of 3862

Thought you might find this interesting. One of the (few) blogs I read is www.andrewtobias.com. He is a sharp fellow. A bunch of folks will see this. Part of his column for 4/26/06: SPAC SPEC Here’s an interesting speculation I do not recommend. I’ve bought some myself, but that’s me. I can’t help myself sometimes. If you buy it and lose, I could never forgive myself. But let me back up. Remember how, in the days of the South Sea Bubble, people were raising money for all manner of ocean-faring expeditions? No? Well, this was the early Eighteenth Century, so even I would have been too young to remember it clearly. (Where is Strom Thurmond when you need him?) But it happened. And one of the ventures was famously undertaken for an enterprise the specifics of which “could not be revealed” – yet found funding anyway. Well, today, apparently, accomplished financiers are raising money for SPAC’s – Single Purpose Acquisition Companies – and, although it is a small and arcane field about which I know very little (where is due diligence when you need it?), I am told it works this way, or at least did in the case of Aldabra Acquisition Corporation: The company is formed by someone with a reputation for being good at this, and raises a bunch of money to make an acquisition – just what acquisition that might be remaining to be seen. In return for their cash, investors get stock and warrants and the promise (if I’ve got this right) that if no acquisition is made within 18 months – the first dozen of which have now passed – yes, their warrants to buy more stock will expire worthless, but they will get their original cash returned to them. So their main risk is losing the use of the cash for eighteen months . . . while, if the acquisition does get done and proves savvy, well, happy days are here again. And what some of the initial investors do, apparently, is sell the warrants in the public market, so that, even if no acquisition is made, they make an immediate 12% or so on their investment, 100% of which is then returned 18 months later. Not so terrible. And if an acquisition is made, their stock itself may rise smartly. They win small or they win big, but they win. So yesterday I bought a bunch of the warrants – ALBAW.OB is the symbol – at 70 cents each, and in an aggregate amount I can afford to lose. I’ve done no research on this except to know that someone smarter than me will lose three times as much if this doesn’t work (famous last words, by the way) . . . and that the people behind all this will lose a million or two in expenses if they don’t wind up concluding an acquisition before the clock runs out. In that sorry case, my 70 cents per warrant is gone. Game over. The gamble is that they will do a deal, and that the warrants will rise smartly when they do. At which point one could either sell them for a short-term capital gain or exercise them and hold the underlying stock in hope of a lightly-taxed long-term capital gain sometime later. That’s it. “Ah,” you’re thinking. “It has come to this.” Well, yes it has: there is a limit to the number of times I can tell you to pay off your credit cards, quit smoking, and buy fuel efficient cars. The occasional SPAC spec adds zest. It is the piquant sauce on an Antoine’s oyster. © 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006 Andrew Tobias

To: Glenn Petersen who wrote (489)	10/2/2006 10:08:57 AM
From: Glenn Petersen	Respond to of 3862

HPAC, Inc. (formerly Healthcare Acquisition Partners), which raised $100 million when it went public on April 14, 2006, has announced that it has signed a definitive agreement to acquire InfuSystem, Inc. for $140 million. HAPC, Inc. Announces Agreement to Purchase InfuSystem, Inc. Monday October 2, 7:45 am ET NEW YORK--(BUSINESS WIRE)--HAPC, Inc. (OTCBB:HAPN - News) announced today that it has entered into a definitive agreement to acquire InfuSystem, Inc., a wholly-owned subsidiary of I-Flow Corporation (NASDAQ:IFLO - News), for $140 million. InfuSystem is a nationwide leader in ambulatory infusion pump management services to oncologists and their patients. InfuSystem works directly with oncology practices to provide continuous infusion pumps and related billing, collection, and administrative services primarily to colorectal cancer patients. The use of continuous infusion chemotherapy regimens has grown significantly during the past three years, driven by superior therapeutic outcomes, greater patient satisfaction, and lower costs than traditional bolus chemotherapy. "InfuSystem fits perfectly with HAPC's acquisition criteria of strong growth, high margins, and an excellent management team," said Sean McDevitt, Chairman of the Board of HAPC. "InfuSystem's executives have worked together for the past 15 years developing this unique business model and delivering strong financial results. We are excited to partner with them for the future." Donald M. Earhart, Chairman, President and Chief Executive Officer of I-Flow, said, "InfuSystem has been an outstanding performer since I-Flow acquired the business in 1998. As we move forward, however, our strategic focus for future growth is on I-Flow pain relief products and our goal of being the leader in treating acute pain after surgery." According to the terms of the agreement, HAPC will acquire all the outstanding shares of InfuSystem from I-Flow through a newly formed subsidiary of HAPC. The aggregate consideration for the acquisition is $140 million, subject to adjustment relating to the level of working capital. I-Flow will receive the aggregate consideration in cash or a combination of cash and a promissory note, depending on financing arrangements to be determined prior to closing. Pursuant to HAPC's certificate of incorporation, the acquisition must be approved by the holders of a majority of the shares of HAPC common stock sold in HAPC's initial public offering (the "IPO"). In addition, the acquisition cannot be completed if the holders of 20% or more of the shares of HAPC common stock sold in the IPO vote against the acquisition and contemporaneously demand that their shares be converted into the right to receive a pro rata portion of the net proceeds of the IPO held in the trust account established for this purpose at the time of the IPO. The transaction is expected to close by either the end of 2006 or the first quarter of 2007, subject to customary closing conditions and the aforementioned stockholder approval. About InfuSystem, Inc. InfuSystem has nearly 20 years of experience supplying patients with external ambulatory infusion pumps. InfuSystem provides management and support to enhance the lives of its patients and the communities it serves. <snip> biz.yahoo.com