H.I.G. Capital, LLC ("H.I.G."), a leading global private investment firm, today announced that it has reviewed the letter addressed to the Board of Directors of Matrixx Initiatives, Inc. (Nasdaq: MTXX) ("Matrixx" or the "Company") from BML Capital Management, LLC, dated January 25, 2011, (the "BML Letter") regarding the pending tender offer for all of the outstanding shares of common stock of Matrixx by Wonder Holdings, Inc. ("Wonder") and Wonder Holdings Acquisition Corp., both affiliates of H.I.G. formed for the purpose of acquiring Matrixx.
H.I.G. believes that the BML Letter is materially misleading and inconsistent with a number of material facts disclosed by the Company in the Schedule 14D-9 filed by Matrixx with the Securities and Exchange Commission on December 22, 2010, as amended from time to time (the "Schedule 14D-9"), and the Company's other public filings and omits a number of other material facts previously disclosed by the Company.
H.I.G. urges Matrixx shareholders to compare the BML Letter with the Schedule 14D-9, which it believes provides an accurate description of the facts and allows investors to better evaluate the validity of the assumptions in the BML Letter regarding the Company.
Nothing in the BML Letter, or Matrixx's earnings for the quarter ended December 31, 2010, provides a basis for H.I.G. to extend the offer or to increase the offer price, and accordingly H.I.G. reaffirms its cash tender offer to purchase, through its affiliates, all of the outstanding shares of common stock of Matrixx for $8.00 per share in cash, without interest and less any applicable withholding taxes. Even though Matrixx solicited 132 potentially interested strategic parties and financial sponsor firms after the settlement was announced, the Company did not receive any superior acquisition proposals during the go-shop period provided for in its previously announced merger agreement with Wonder and Wonder Holdings Acquisition Corp., and reaffirmed its recommendation that Matrixx stockholders tender their shares pursuant to the tender offer commenced by Wonder.
The tender offer is scheduled to expire at 5:00 p.m., New York City time, on January 31, 2011. The depositary for the tender offer has advised that, as of 5:00 p.m., New York City time, on January 27, 2011, approximately 353,392 shares of Matrixx common stock have been tendered and not withdrawn, representing approximately 3.7% of the outstanding shares. If a majority of Matrixx's outstanding shares on a fully-diluted basis have not been validly tendered and not withdrawn as of the expiration time, Wonder may, in its sole discretion, allow the tender offer to expire and terminate its merger agreement with Matrixx.