DXL Board Reverses Course, Urges Vote Against FullBeauty Merger
DXLG sits 46% above its 52-week low of $0.435 on light trading volume (0.2× avg).
Summary
The DXL board has flipped its stance on the pending FullBeauty merger, now recommending stockholders vote against the deal. The preliminary proxy cites FullBeauty's heavy debt load, potential negative equity value, and the severe dilution DXL holders would face. This follows months of rejecting a competing $0.84/share tender offer from Zodiac Partners, which the board had dismissed as undervaluing the company. The reversal signals the board now sees the FullBeauty combination as worse than the status quo or the Zodiac bid. With the stock at $0.64, the board's own analysis suggests the merger terms are destructive. The special meeting date is not yet set, but the definitive proxy will mail in coming weeks.
At the time of this announcement, DXLG was trading at $0.64 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $35.2M. The 52-week trading range was $0.44 to $1.69. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: GlobeNewswire.