Mylan to Purchase Substantially All of the Assets of ProPhase Labs Inc.

Back on January 9th it was announced that Mylan was to purchase all of the assets of ProPhase Labs plus assumed liabilities subject to shareholder approval.

Last night it was disclosed in the PRE 14A that the proceeds from the sale of the assets would be approximately $41.3 million.  This is AFTER a $2.1 million tax liability to the state and $2.2 million of transaction related costs including accounting and legal fees and expenses, and the repayment of the Secured Promissory Notes.

In addition the company is keeping it's cash and accounts receivable which combined equal $4.2m.

So we basically have $45.5m sitting in an "not quite" shell company that last traded for $31.97m.

The CEO has stated he's against a special dividend because it's not prudent from for taxes which is good thinking from a capital management perspective.

 In fact there may be a possibility of a tender offer (he went so far as to admit it's a possibility and he said he wouldn't mind at all if his best friends wanted to do that but "my attorneys would yell at me if i said anything definitive" ). However, I did speak with another large shareholder who wasn't as optimistic.

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