Ademi LLP is investigating Profire (Nasdaq: PFIE) for possible breaches of fiduciary duty and other violations of law in its transaction with CECO.
In the transaction, stockholders of Profire will receive $2.55 per share, in a tender offer transaction with an equity value of approximately $125 million. The transaction agreement unreasonably limits competing transactions for Profire by imposing a significant penalty if Profire accepts a competing bid. Profire insiders will receive substantial benefits as part of change of control arrangements.
The transaction agreement unreasonably limits competing transactions for Profire by imposing a significant penalty if Profire accepts a competing bid. Profire insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Profires’ board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.