Current Price – $7;
Offer Price – $7.5;
Upside – 7% or $50 (for odd lot holders);
Expiration date – 1 Dec 2015;
Hennessy Advisors, Inc., a California corporation, invites its shareholders to tender up to $25.0 million in aggregate value of its Common Stock, no par value per share, for purchase by Hennessy Advisors, Inc., at a price of $25.00 per Share, net to the seller in cash. As of August 19, 2015, the Company had 6,025,381 Shares outstanding. At the Purchase Price of $25.00 per Share, we could purchase 1,000,000 Shares if the Offer is fully subscribed, which would represent approximately 17% of the Company’s outstanding Shares as of August 19, 2015.
No proration for Odd Lot holders:
If more than 2,000,000 shares are properly tendered and not properly withdrawn, the Company will purchase shares from all tendering shareholders on a pro rata basis as specified in the Offer to Purchase, subject to the "odd lot" and conditional tender provisions described in the Offer to Purchase.
Source of Funds:
The Company expects to fund the purchase of shares in the tender offer with a combination of available cash, and borrowings under a secured $12 million credit facility with J.P. Morgan Chase Bank, N.A. that it expects to enter into prior to the close of the tender offer (the "Credit Facility").