Kaskela Law LLC Announces Stockholder Investigation of Hemisphere Media Group, Inc. (HMTV) Following Announced Agreement to Sell the Company at $7.00 Per Share

Rhea-AI Summary

Kaskela Law LLC is investigating Hemisphere Media Group (HMTV) on behalf of its shareholders following the company's acquisition agreement with Gato Investments for $7.00 per share. Edenbrook Capital, owning 15% of HMTV shares, claims the deal is unfair and undervalues the company, estimating shares should be worth between $16 and $23. The investigation aims to assess the fairness of the transaction and whether directors breached their fiduciary duties.

Positive

• None.

Negative

• Acquisition price of $7.00 per share is considered significantly lower than the estimated value of $16 – 23 per share.
• Concerns raised about the fairness of the acquisition process benefiting insiders at the expense of public shareholders.
• Investigation into potential breaches of fiduciary duties by Hemisphere's directors.

PHILADELPHIA, June 14, 2022 /PRNewswire/ -- Kaskela Law LLC announces that it is investigating Hemisphere Media Group, Inc. ("Hemisphere") (NASDAQ: HMTV) on behalf of the company's shareholders.

On May 9, 2022, Hemisphere announced that it had agreed to be acquired by its controlling stockholder, Gato Investments LP ("Gato"), a portfolio investment of Searchlight Capital Partners, L.P., at a price of $7.00 per share.  Following the closing of the proposed transaction, shares of Hemisphere's stock will no longer be publicly traded.

According to Edenbrook Capital, LLC ("Edenbrook"), a holder of approximately 15% of Hemisphere's publicly traded shares, the takeover transaction "is borne out of a flawed, unfair process that benefits insiders at the expense of public shareholders."  Further, Edenbrook calculates "that the equity value for public shareholders should be at least $16 – 23 per share."

The investigation seeks to determine: (i) whether the transaction as structured is fair to Hemisphere shareholders; (ii) whether HMTV shareholders will be receiving sufficient consideration for their shares; and (iii) whether Hemisphere's directors have breached their fiduciary duties to the company's stockholders in agreeing to sell the company to Gato.

Hemisphere shareholders are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 – 0750, or by email (abell@kaskelalaw.com) or online at https://kaskelalaw.com/cases/hemisphere-media-group-inc/ , for additional information about this investigation and their legal rights and options.

Kaskela Law LLC represents investors in securities fraud, corporate governance, and merger & acquisition litigation. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com. This notice may constitute attorney advertising in certain jurisdictions.

CONTACT:
D. Seamus Kaskela, Esq.
Adrienne Bell, Esq.

KASKELA LAW LLC
18 Campus Blvd., Suite 100
Newtown Square, PA 19073
(484) 229 – 0750
(888) 715 – 1740
www.kaskelalaw.com

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SOURCE Kaskela Law LLC

FAQ

What is the investigation involving Hemisphere Media Group (HMTV) about?

The investigation by Kaskela Law LLC focuses on the fairness of the acquisition agreement with Gato Investments at $7.00 per share and whether HMTV shareholders are adequately compensated.

What was the acquisition price for Hemisphere Media Group (HMTV)?

The acquisition price for Hemisphere Media Group was set at $7.00 per share.

Who is raising concerns about the Hemisphere Media Group (HMTV) acquisition?

Edenbrook Capital, which holds approximately 15% of HMTV shares, is raising concerns about the fairness of the acquisition process.

What alternative value has Edenbrook Capital estimated for HMTV shares?

Edenbrook Capital estimates that HMTV shares should be valued at least between $16 and $23.

What is Kaskela Law LLC's role in the Hemisphere Media Group (HMTV) situation?

Kaskela Law LLC is representing shareholders in the investigation concerning the acquisition and potential fiduciary duty breaches by Hemisphere's directors.