MITL SHOR

ShoreTel Inc (NASDAQ:SHOR) Gets Acquired by Mitel

ShoreTel Inc (NASDAQ:SHOR)

ShoreTel Inc (NASDAQ:SHOR) is being acquired by Mitel Networks Corp (NASDAQ:MITL) for $7.50 per share in an “all cash” transaction that totals $530 million. The purchase price represents a 28% premium to yesterday’s closing share price of $5.85.

Don Joos, CEO of ShoreTel Inc (NASDAQ:SHOR), stated in a press release “With the announcement today, this concludes our comprehensive review of strategic alternatives by delivering a significant cash premium for our shareholders. Customers are clearly moving to the cloud at a rapid pace. The combination of Mitel and ShoreTel creates a new UCaaS market leader with a differentiated strategy and solution, and a clear migration path so that no customer is left behind or will have to abandon what they already have to cloud-enable their organization.”

Following the acquisition, Mitel will be well positioned to offer their customers cloud-based communications. For enterprise customers, ShoreTel Inc (NASDAQ:SHOR)’s solutions will strengthen Mitel’s ability to cloud-enable customers with technology that is needed for next-generation cloud applications.

Mitel will finance the acquisition using a combination of cash on hand from the combined businesses, its existing revolving credit facility, and proceeds from a new fully underwritten $300 million term loan maturing in 2023. BMO Capital Markets is leading the new term loan facility with Citizens Bank, N.A., HSBC Bank Canada and Canadian Imperial Bank of Commerce serving as Joint Lead Arrangers and Joint Bookrunners. Citizens Bank, N.A., lead on the existing amended facilities, will act as administrative agent for these and the new term loan.

As of noon, EST, MITL shares are up almost 5% on the deal news.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

InfoSonics Corporation (NASDAQ:IFON)

Acquisition Boosts InfoSonics Corporation (NASDAQ:IFON)

InfoSonics Corporation (NASDAQ:IFON)

InfoSonics Corporation (NASDAQ:IFON) shares gained 23.58% today after the company announced that it will be acquiring Cooltech – an Apple licensed partner. The market responded favorably to the acquisition news as IFON shares closed Tuesday at $0.49 but gapped up to open at $0.67, reached an inter-day high of $0.84, then retreated to close the day at $0.61. Volumes were over 20 times their 30-day, daily average.

Infosonics $IFON
1 Month Daily Candle Bar Graph for $IFON

Cooltech is a Miami-based company that owns OneClick, a chain of retail stores, and is an Apple authorized reseller under the Apple Premier Partner, APR (Apple Premium Reseller) and AAR MB (Apple Authorized Reseller Mono-Brand) programs; and Icon Networks, an authorized distributor to the OneClick stores and other resellers of Apple products and other high-profile consumer electronic brands.

Cooltech will become a wholly-owned subsidiary of InfoSonics Corporation (NASDAQ:IFON) in exchange for 62.5 million shares of IFON common stock. The merger has already been approved by the Special Committee of InfoSonics’ Board of Directors. However, it is still subject to approval by the Infosonic’s shareholders as well as customary closing conditions.  Cooltech and Infosonics Corporation expect to close the transaction in the Q4 2017.

Joseph Ram, President and CEO of InfoSonics stated ” Cooltech has built an exceptional relationship with the largest company in the world, Apple, to aggressively expand in related markets to our existing business. We believe this merger represents an accretive opportunity for InfoSonics shareholders to participate in Cooltech’s growth and maximize the value of our NASDAQ-listed company with several synergies between our businesses.”

Cooltech has, simultaneously, signed an obligation to purchase 2.5 million shares of InfoSonics Corporation (NASDAQ:IFON) common stock at $0.40 per share in cash and warrants exercisable into 2.5 million additional shares of InfoSonics common stock with an exercise price of $0.484 per share (a 10% premium to the closing bid price of InfoSonics common stock on the NASDAQ Capital market on July 24, 2017). The approximately $1 million of proceeds from this private placement will be used by InfoSonics Corporation (NASDAQ:IFON) to cover costs associated with the merger.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $IFON and receive breaking news on other hot stocks by signing up for our free newsletter!

 

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Calithera Biosciences, Inc. (NASDAQ:CALA) Cuts Deals

Calithera Biosciences, Inc. (NASDAQ:CALA)

Calithera Biosciences, Inc. (NASDAQ:CALA) has had an extraordinary 2017. CALA ended trading on December 31, 2016 at $3.20 and last Friday the stock closed at $9.20. Average daily volumes for December were just over 470,00, but since the beginning of the year daily volumes have averaged over 870,000. Calithera Biosciences, Inc. (NASDAQ:CALA) now has a market cap of just under $200 million – and has built that with only 44 employees.

In December Bristol-Meyers Squibb Company (BMY), a $90 billion company, announced a clinical trial collaboration to evaluate their Opdivo drug in combination with Calithera’s CB-839 in patients with clear cell renal cell carcinoma – a type of kidney cancer. Then in January, Incyte Corporation, a $24 billion biotechnology firm, and Calithera signed a collaboration and licensing agreement, in exchange for a $45 million payment to Calithera, for Calithera’s new drug candidate CB-1158. CB-1158 is being developed with an aim to suppress the body’s production of Arginase which has been linked to tumor growth in the kidneys, breast, and lungs as well as some variants of leukemia. Incyte will be funding 70% of the development but receiving 60% of the profits should the drug be commericialized. Some insiders put the deal to be potentially worth over $450 million – more than double Calithera’s market cap. Additionally, Incyte will be purchasing $8 million worth of Calithera Biosciences, Inc. (NASDAQ:CALA) shares.

The Incyte deal sent CALA shares up over 45%. But since then the stock has been trading in a channel.

For a biotechnology firm with no revenues, the lack of volatility is noteworthy but not because it is so unusual, but because it could be an opportunity for traders. Calithera Biosciences, Inc. (NASDAQ:CALA) has demonstrated its ability to develop products that attract the attention, and resources, of the leaders in their sector. That access to established global development, marketing, and distribution channels is pure gold. It also makes many wonder if one of the two firms that have already inked deals with Calithera might decide that it is more economical to acquire them, and their 44 employees, than continue to negotiate deals.

The acquisition landscape is rumored to be fertile. According to Earnst & Young, in 2016 only 6% of biotech executives claimed to have afive or more acquisitions or collaborative deals somewhere in the pipeline but when the accounting firm last surveyed those same executives, the number jumped to 43%. Industry experts are of the opinion that earnings drivers such as price increases, share buy-backs, and financial engineering have all run their course and now the only way to grow earnings is to buy additional revenues.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

Deal Over! Unilever PLC (ADR) (NYSE:UL) Fends Off Kraft Heinz Company (NASDAQ:KHC)

Unilever PLC (ADR) (NYSE:UL)

The Kraft Heinz Company (NASDAQ:KHC) has ended their attempt to acquire Unilever PLC (ADR) (NYSE:UL). The $143 billion deal amounted to $50/share for UL when it was trading around $42 – almost a 20% premium. Kraft’s proposal included $30.23 per share in cash, payable in U.S. dollars, and 0.222 of a share in a new enlarged entity per Unilever share. The proposed acquisition would have been the third-largest acquisition in history, the largest ever acquisition of a UK-based company, and the largest ever in the food & beverage category.

A Kraft Heinz Company (NASDAQ:KHC) spokesperson commented “Our intention was to proceed on a friendly basis, but it was made clear Unilever did not wish to pursue a transaction. It is best to step away early so both companies can focus on their own independent plans to generate value.”

Industry observers are hinting that Unilever’s quick rejection of Kraft Heinz Company (NASDAQ:KHC) offer, and Kraft’s quick withdrawing of their offer suggest a strategy that was not completely thought through.

Interestingly, there was a massive spike in call options on shares of Unilever PLC (ADR) (NYSE:UL) – on Wednesday, February 15, 2017. That is two days before the deal hit the newswires.

When news of the proposed takeover hit the street, volumes exploded. Unilever PLC (ADR) (NYSE:UL) shares traded over 18 times their normal daily average volumes and Kraft Heinz Company (NASDAQ:KHC) traded over 10 times its normal average daily volumes as traders sought to arbitrage the deal’s pricing.

With news that Unilever PLC (ADR) (NYSE:UL) has successfully rejected the deal, activity in these two stocks is certain to dominate trading when the market opens on Tuesday.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

Zeltiq Aesthetics Inc. (NASDAQ:ZLTQ) Purchased by Allergan plc (AGN) for $56.50 a Share

Zeltiq Aesthetics Inc. (NASDAQ:ZLTQ)

Zeltiq Aesthetics Inc. (NASDAQ:ZLTQ) has been purchased by Allergan plc (NYSE:AGN) in a deal worth $2.47 billion – $56.50/share. ZLTQ closed at $49.40 on Friday and are trading in Monday’s pre-market session around $55.55 – up over 12%. Volumes are heavy. Average daily volume for ZLTQ is just over 700k but this morning already over 3.6 million shares have traded hands.

Zeltiq Aesthetics Inc. is a medical technology company, based in Pleasanton, CA, that develops products utilizing its proprietary controlled-cooling technology platform – the CoolSculpting system. Designed to reduce unwanted fat, CoolSculpting is based on the scientific principle that fat cells are more sensitive to cold than the overlying skin and surrounding tissues. CoolSculpting utilizes patented technology of precisely controlled cooling to reduce the temperature of fat cells in the treated area, which is intended to cause fat cell elimination through a natural biological process known as apoptosis.

Dublin, Ireland-based Allergan plc (NYSE:AGN) is a global pharmaceutical company. Allergan is focused on developing, manufacturing and commercializing branded pharmaceuticals, devices, and biologic products for patients around the world. Allergan is a constituent of the S&P 500 and has a market cap of over $95 Billion with over $15 Billion in annual sales.

Brent Saunders, Chairman and CEO of Allergan stated in a press release – “With CoolSculpting, our offerings to plastic surgeons, dermatologists and aesthetic practitioners will now extend to three of the largest and fastest-growing segments of their practices, putting Allergan in a unique position to provide expanded customer service, and help meet the needs of patients.”

NASDAQ:ZLTQ shares are trading 25% above Friday’s close of $49.40. AGN Shares are down about 1% to $244. Zeltiq Aesthetics, Inc. shares have performed well for investors over the past year – up almost 150% before this morning’s news. In 2015 the company posted their best EPS yet – a gain of $1.08 on sales of $255.4 million. Of the eleven firms that follow NASDAQ:ZLTQ, ten rated the shares as a “Strong Buy”.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

GenVec Inc. (Nasdaq: GNVC) Acquired – Shares rise 40%+

GenVec Inc. – Nasdaq: GNVC

Nano-cap GenVec Inc. shares are up over 40% today on news that Intrexon Corporation (NYSE: XON) that it has entered into a definitive agreement to acquire Germantown, MD-based GenVec, Inc. (Nasdaq: GNVC), a clinical-stage company and pioneer in the development of AdenoVerse™ gene delivery technology.

Thomas D. Reed, Ph.D., Intrexon’s chief science officer commented, “Our acquisition of GenVec will mark our continuing commitment to add gene delivery platforms that complement our multigenic control systems. Intrexon’s proficiency in using various viral as well as non-viral transfer techniques to integrate our gene programs affords us the capability to pursue an array of in vivo and ex vivo gene and cell therapy approaches, and the addition of a helper-dependent adenoviral system with a substantial payload capacity dramatically expands the types of in vivo therapeutic programs we can pursue.”

GenVec stockholders will receive 0.297 of a share of Intrexon Common Stock in exchange for each share of GenVec common stock. This exchange ratio represents $7.00 per share of GenVec’s common stock based on Intrexon’s 5-day volume weighted average price as of January 23, 2017. GenVec stockholders will also receive a right to contingent consideration equal to 50% of any milestone or royalty payments received within 36 months after the closing of the transaction under GenVec’s Research Collaboration and License Agreement with Novartis.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

1/24/2017
Ticker Symbol GNVC
Last Price a/o 3:27 PM EST  $                      1.93
Average Volume 445,400
Market Cap $10.17 million
Sales $600k
Shares Outstanding 2.24 million
Share Float 1.72 million
Shortable Yes
Optionable No
Inside Ownership 1.10%
Short Float 3.04%
Short Interest Ratio 0.12
Quarterly Return 19.47%
YTD Return 41.43%
Year Return -12.69%

Ariad Pharmaceuticals (Nasdaq: ARIA) Agrees to $5.2 Billion Buy-out

Ariad Pharmaceuticals, Inc. – Nasdaq: ARIA

Takeda Pharmaceutical Company Inc. has agreed to purchase Cambridge, MA-based Ariad Pharmaceuticals for $24 per share. Ariad’s shares, traded on the Nasdaq under ticker ARIA, closed Friday at $13.74 and shot up to an intraday high of $23.81. The $5.2 Billion deal represents a 75% premium over the Friday closing price.

ARIAD Pharmaceuticals, Inc. is focused on discovering, developing and commercializing precision therapies for patients with rare cancers. ARIAD is working on new medicines to advance the treatment of rare forms of chronic and acute leukemia, lung cancer and other rare cancers. According to its website, Takeda conducts activities according to the corporate mission to “strive towards better health for people worldwide through leading innovation in medicine.”

Alexander J. Denner, Ph.D., Chairman of the ARIAD Board of Directors, said: “This transaction is a great outcome for ARIAD shareholders and brings hope to improve the lives of many cancer patients. It has been a pleasure to work with our outstanding management team and, on behalf of the board of directors, I extend our deepest gratitude to everyone at ARIAD for their unrelenting dedication.”

Ariad Pharmaceuticals is covered by nine firms. Five gave ARIA a rating of “Strong Buy”, two rated ARIA a “Hold”, and two rated ARIA a “Sell”. Their consensus price target was $13. While ARIA has never reported a profit, it sales have done well. In 2011 Ariad Pharmaceuticals reported sales of $25.3 million but in 2015 Ariad reported sales of $118.8 million.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

1/9/2017
Ticker Symbol ARIA
Last Price a/o 11:32 AM EST  $                    23.75
Average Volume 6.5 million
Market Cap $2.6 Billion
Sales $186.2 million
Shares Outstanding 189.4 million
Share Float 187.7 million
Shortable Yes
Optionable Yes
Inside Ownership 0.20%
Short Float 17.26%
Short Interest Ratio 13.45
Quarterly Return 2.92%
YTD Return 10.45%
Year Return 161.22%

Fred’s Pharmacy (Nasdaq: FRED) Acquiring 950 Rite Aid Stores

Fred’s Inc.; Nasdaq: FRED

Shares of $FRED are up over 80% on acquisition news. Fred’s Inc. today announced that the Company has signed an agreement with Walgreens Boots Alliance, Inc. (NASDAQ: $WBA) and Rite Aid Corporation (NYSE: $RAD) to purchase 865 stores in an all-cash transaction valued at $950 million.

The agreement was born of concerns by the Federal Trade Commission in its review of the proposed acquisition of Rite Aid by Walgreens Boots Alliance. The Walgreen Boots Alliance stated in their press release: “Walgreens Boots Alliance is actively engaged in discussions with the FTC regarding the transaction and is working toward a close of the Rite Aid acquisition in early calendar 2017.”

Fred’s Pharmacy Chief Executive Officer Michael K. Bloom, commented, “This will be a transformative event for Fred’s Pharmacy that will accelerate our healthcare growth strategy through our acquisition of 865 new stores located in highly attractive markets. We believe that this transaction will also create tremendous opportunities for both our new and existing front of store and pharmacy team members.”

Walgreens (Nasdaq: $WBA) shares hit $87.26 (+1.4%) on the news. Rite Aid (NYSE: $RAD) is up over 5% at $8.63. $FRED shares closed yesterday at $11.15. Today shares of $FRED have traded as high as $20.42.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

Ticker Symbol FRED
Last Price a/o 11:09 AM EST  $             19.62
Average Volume 322,600
Market Cap $406.3 million
Sales $2.15 Billion
Shares Outstanding 36.44 million
Share Float 35.1 million
Shortable Yes
Optionable Yes
Inside Ownership 5.90%
Short Float 8.43%
Short Interest Ratio 9.16
Quarterly Return 14.96%
YTD Return -30.54%
Year Return -25.64%