In a deal worth $411,000, TeeZee, a Florida-based company created by Christopher Tisi the current CEO of HNNS had bid to buy the majority of HNNS's assets. But the decision this week to 'buy more time' puts the deal on ice while the board looks for alternatives.
The move reverses the board's agreement in November last year that gaveTeeZee the option to buy the assets of the dietary supplement firm, plus its $2 million debt.
"The board primarily based its decision as not in the current best interest of the shareholders, the current market value of the company's shares, current operations, and Mr. Tisi's recent agreement to stay with the company through December 3, 2005," said the weight-management firm in a statement this week.
The statement is an abrupt roundabout turn from last November when James A. Brown, chairman of the board of directors, said the offer by TeeZee presented a "unique opportunity for the board to realise value for the shareholders of HNNS while providing the company with sufficient liquidity to seek strategic alternatives."
While the directors rejected TeeZee's offer this week, the firm added that it is still on look out for new opportunities. "The board intends to continue to consider strategic alternatives to increase shareholder value, which alternatives may include the sale of our current business, a merger or other combination with another enterprise, or both."