Need the details here -- what did they pay for FBR AUM? FBR is publically traded with 55 million shares outstanding. The company has zero debt and $4.70 / share in cash but the stock only trades at $2.80.
I am not 100% sure I understand the deal from the press release. Are the two companies merging? All cash deal? Share dilution?
Not sure how the FBR thing finalizes. FBR has been under a dark cloud for a long time. I think this moves will help them focus on distribution. Neil Hennessey and his family I believe has some serious dough, I'm sure they don't want to lose it, but I suspect they will be able to find financing at favorable rates. What I like about the stock is that it is fairly priced at present, but if just one of their funds outperforms they will attract assets quickly.
The question in my mind is when will that be and can we wait.
Yeah, I've been looking for the details as well, can't find anything. Seems like a positive that the assets that HNNA manages will just about double, and that a lot of FBR managers are going to HNNA, but can't find anything about the financials of the deal. I would imagine that it's gonna be share dilution, does HNNA have the cash for a stock buyout?
HNNA has maybe $8-$9M cash on hand. I would guess they'll tap a revolving credit line and pay $12-$15M now and then the remaining amount in the next year or two. They also have to issue some warrants which is basically share dilution.
I think HNNA's stock is much more valuable today and I do believe this is a good deal; however, I cannot crunch any numbers until I understand the share dilution.
HNNA stock is going up though. Micro cap which means it could take some time -- but a double or triple isn't out of the question from the current $2.40 range.