On April 28, National Holdings Corp. reached an agreement to become acquired by Fortress Biotech Inc.
Fortress Biotech is a biopharmaceutical company that develops novel pharmaceutical and biotechnology products. It has become on of the leading companies in the biopharameceutical industry.
National Holdings (NHLD) is the parent company to National Securities Corp. and vFinance Investments Inc., two independent broker-dealers.
“We have worked closely with NHLD over the years and believe strongly in the people, their overall business and in particular their unique ability to finance emerging biotech companies,” said Michael Weiss, vice chairman of Fortress Biotech and former chairman of NHLD.
Fortress Biotech is offering to purchase all of NHLDS’s shares at $3.25 per share in cash. This is a 44% premium over the closing price listed on Wednesday, April 27.
This means that the biotech giant is offering to purchase 12.44 million shares at a total of $40.4 million form NHLD. This is almost a quarter of NHLD’s annual profit, which is low compared to other independent broker-dealers in the industry.
The biopharmaceutical industry worldwide has been increasing; its total profit adds up to more than $157 billion.
The board of directors for NHLD has given its approval of the merger agreement but remains quiet on the decision of the shareholders to accept the offer. The final decision by the Financial Industry Regulatory Authority Inc. is still pending approval.
The announcement of this merger is the not the first bit of news this year from NHLD. The company announced in February that National Securities Corp. had taken part in the purchase of Lyft shares. Lyft is a fast growing car sharing service that is present in over 150 cities.
“Everyone at NHLD believes in the great potential of our Company and we believe this transformational deal will create an expanded platform that will lead to more corporate advisory business, institutional brokerage and enhance National’s overall reputation as a well-respected and valued corporate advisor,” said Robert Fagenson, CEO and Chairman of National Holdings.