01-Sep-15 16:16 ET
HeartWare International to acquire Valtech Cardio, Ltd.  (81.81 -3.79)

Valtech is a privately held company that specializes in the development of innovative surgical and transcatheter valve repair and replacement devices for the treatment of the most prevalent heart valve diseases — mitral valve regurgitation (MR) and tricuspid valve regurgitation

  • According to the terms of the agreement, Valtech shareholders will receive an up-front consideration of 4.4 mln shares of HeartWare common stock; 800,000 shares of HeartWare common stock, contingent upon CE Mark approval for Cardioband; and 700,000 shares of HeartWare common stock upon the earlier of first-in-man implants for either Cardioband tricuspid or CardioValve. The transaction also includes warrants to purchase 850,000 shares of HeartWare common stock at an exercise price of $83.73 per share (based on a volume weighted average price of HeartWare shares) exercisable upon attainment of $75 mln in net sales (trailing 12 months) of Valtech products, and an earn-out payment of $375 mln (payable in cash or stock, at the discretion of HeartWare), upon attainment of $450 mln of net sales (trailing 12 months) of Valtech products.

Courtesy of

blog HTWR weekly 10-12-2015

This purchase by HTWR drove the stock down from 81 bucks to the 65 area.

Prior to this event Engage Capital made a large purchase of HTWR shares. They are now squealing like pig and they are way underwater. They are threatening a proxy fight (control of the board of directors) if HTWR doesn’t drop this buyout.

There contention is that HTWR was a great buyout candidate itself prior to there proposed purchase of Valtech Cardio.

My take is that no matter who wins here the stock will go back to at least the 80’s. But,but,but it could go down to 28 to 30 first.

I bought small today at 43 bucks flat because HTWR could easily pop back to the 65 area with any good news at all. At this point it just takes no negative news for a pop.  I’ll ride it down to 28/30 if necessary.  The Fibonacci Extension you see on the gives me a measured move to 33.18 This definitely not for the faint of heart. Keep shares small until HTWR turns around.

Dave C

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