LAW FIRM REPRESENTS PROPHASE SHAREHOLDERS - SEEKS MORE MONEY
October 9, 2012
New York, New York -- Tripp Levy PLLC, a leading national securities law firm, announces that it has been retained to represent ProPhase Labs, Inc. shareholders in connection with the proposed acquisition of their shares of ProPhase. Last month, Matrixx Initiatives offered to acquire ProPhase at $1.40 a share. ProPhase rejected the offer. Today Matrixx came back with a revised offer of $1.60 a share, valuing the whole company at nearly $24 million.
Matrixx has already acquired an option to buy 1.45 million shares, about 10% of the company, that are held by ProPhase founder and former CEO, Guy Quigley. Quigley and Matrixx have agreed to a deal that would sell Matrixx his shares at $1.40 and allows Matrixx to vote his shares in a proxy fight.
The $1.60 per share offer would represent more than a two-year high for ProPhase shares. The investigation concerns whether the board of directors of ProPhase are breaching their fiduciary duties by not obtaining the maximum value for its shares. If you are a shareholder of the company and would like additional information concerning this matter, please contact us toll free at 877-772-3975 or email at contact @ tripplevy
A law firm hired to protect the shareholders value? Yeah --- right. If anybody is going to protect the value of shareholders start with the insiders who control about 43% of the stock. If you want serious offers, PRPH should engage an Investment Banking firm to properly price the value. Matrixx wants to buy PRPH for $24 million? They had $20 million in sales last year and with the new products , marketing and cost cutting initiatives suddenly a hedge fund comes out of the woodwork and wants "us". Try valuing the company realistically on an appraisal of future sales NOT what the stock price was 6 months ago and you'll come up with some realistic numbers. I'm certainly holding my many shares. Just my humble opinion.