Filings from July 13-19

Spin Offs:

Rightside Group is continuing with the spin off from Demand Media and have requested to be traded on a national exchange.

Occidental Petroleum Corporation (OXY) is spinning off California Resource Corporation. This new company will be an exploration and production company exclusively focused in California by now. It represents a quarter of the oil and gas revenues of Occidental Petroleum. California Resource has grown revenues, but margins decreased primarily due to increased depreciation. It appears to be a heavily fixed asset dependent business, and they have expanded those assets to grow. Cash flow from operations has maintained itself with a drop in 2012 primarily driven by dry hole expenses. It is hard to estimate the pricing of oil in California as they are exempt from the US oil regulations, but this island status typically affects refined products, which this is not. Occidental Petroleum will retain 19.9% of the company for up to 18 months, which could allow for an interesting stub stock opportunity. Finally, there is an unknown amount of debt California Resource Corporation will then issue back as a dividend. Hopefully future filings will provide the missing details for more analysis, but it is worth looking into.

Tribune Publishing issues another update now stating it will be spun off on August 4, 2014 and the declaration date will be July 28, 2014. Additionally, there were minor word changes primarily to the debt financing. Additionally, it appears some of the executives had birthdays since the last filing as their ages were changes. They also changed the number of shares owned by investors now that they shares per the distribution agreement was finalized.

Mergers:

BioFuel Energy Corporation (BIOF) and GBJL Capital, a Dallas real estate company will merge via an asset sale for cash and equity.

mktg, inc. (CMKG) and Aegis Lifestyle continue their merger for cash.

Forest Oil Corp (FST) and Sabine Oil and Gas LLC, a private company, will merge for equity, but it will now be considered an acquisition pending Forest Oil shareholder approval.

Medical Action Industries (MDCI) and Owens & Minor, Inc. will merge for cash.

Earthstone Energy Inc. and Oak Valley Resources will merge for cash and equity.

Sequential Brands Group, Inc. (SQBG) and Galaxy Brand Holdings are merging in a cash and stock transaction.

TW Telecom Inc. (TWTC) and Level3 Communications (LVLT) will merge in a cash and stock deal.

AbbVie continues to pursue Shire Plc (SHPGY) to offshore the company.

Quartet Merger Corp (QTET) and Pangea Logistics Solutions will merge for cash and shares.

Augusta Resource Corp (AZC) and HudBay Minerals (HBM) will merge for shares and warrants.

IPOs:

There are lots of filings for new companies, but many fewer issue statements to be traded on a national exchange. As such, the focus will now be with those companies as a screen for investment potential.

TubeMongal Inc (TUBE) is being issued at an estimated $8 per share for a business that has no profit, operating income or cash flows.

Roka Bioscience, Inc. (ROKA) is being issued at an estimated $16 per share for a business that has no profit, operating income or cash flows.

Sage Therapeutics (SAGE) is being issued at an estimated $18 per share for a business that has no profit, operating income or cash flows.

FX Energy, Inc. (FXEN) is issuing preferred stock. It appears to be hit or miss in gains and driven by Polish oil.

Terrapin 3 Acquisition Corp (TRTLU) is a “blank check company.” The general plan is to fund their future takeovers.

Microlin Bio, Inc (MCLB) is being issued at an estimated $5.50 per share for a business that has no profit, operating income or cash flows.

CareDX, Inc. (CDNA) is being issued at an estimated $17 per share for a business that has no profit, operating income or cash flows.

Terraform Power, Inc. (TERP) is being issued at an estimated $25 per share for a business that has no profit or cash flows.

1347 Capital Corp (TFSC) is being issued at an estimated $10 per share for a business that has no profit, operating income or cash flows.

Barclays is issuing preferred shares as an ADR (BCS.PR).

Sunshine Bancorp (SBCP) is converting from a savings and loan association will convert to a bank and issue shares.

Rightside Group is also on this list. See above.

Leave a Reply

Your email address will not be published.