22NW Fund makes all cash $2.00 offer for InfuSystem
22NW Fund announced that it had transmitted a letter to the Board of InfuSystem Holdings to acquire all outstanding shares of INFU for $2.00 per share. 22NW's proposal is an all cash offer, subject to customary due diligence, regulatory approval, and financing, which 22NW Fund believes is readily available. The offer represents a premium of 29% from the close on June 12th, the day after the offer was transmitted, and would deliver immediate, certain value to INFU's shareholders. Aron English, the Manager of 22NW Fund remarked, "Despite the immediate liquidity our offer represents for shareholders, and despite requests from multiple shareholders on INFU's May 22nd conference call to initiate a sale process for the company, INFU's Chairman declined to speak with 22NW Fund about the offer before the Company's upcoming annual meeting, scheduled for June 22nd, 2017. INFU has proven to be an unsuitable public markets investment with a lifetime return of -37% vs. the Russell 2000 of +78%. Year-to-date, INFU is down 39% vs. +4% for the IWM. The Board owes it to the shareholders to act on our offer now." 22NW Fund believes that the Board's failure to engage immediately after receiving the proposal is a dereliction of the Board's duty to maximize value for shareholders. 22NW Fund calls upon the Board to submit a standard confidentiality agreement to 22NW Fund so that it may begin due diligence immediately. At the same time, the Board should initiate a sale process which may attract other bidders, so that a transaction may be concluded swiftly. 22NW Fund calls upon other shareholders to contact INFU's Board to express their views on these matters.