NEW YORK, March 22, 2011 /PRNewswire/ -- Mangrove Partners,
owners of 149,373 shares representing approximately 5.71% of the
outstanding shares of CPEX Pharmaceuticals, Inc. (Nasdaq: CPEX),
questions CPEX's apparent desperate plea to stockholders asking
them to support a merger that will pay management over $7 million dollars, or approximately 10% of the
total deal compensation. Mangrove Partners further notes that
CPEX's stock price has been trading consistently above the offer
price, with more than 75% of shares traded this month having
transacted above the offer price of $27.25 per share.
With regards to CPEX's press release, Nathaniel August, Director of Mangrove Partners,
remarked, "We are disappointed that CPEX continues to spend
stockholders' money on overnight mailings and PR firms to support a
merger which we believe undervalues CPEX. The market seems to agree
with our assessment as the stock has consistently traded above the
deal price for most of March. At this point it seems that
stockholders can do better than the deal price by simply selling
their shares in the market. The antics of management seem to be
nothing more than a last ditch effort to capture gigantic change of
control payments for themselves by scaring small stockholders into
an alternative that is clearly worse than the current market price
offered for their shares."
Mangrove Partners has voted against the merger and continues to
believe better alternatives are available to stockholders, most
notably the fully-financed dividend recapitalization it has
presented to CPEX's Board of Directors and which it intends to
present to CPEX again immediately after stockholders officially
vote down the merger.
Investors with questions concerning our reasons for voting
against the merger should call Steven C.
Balet or Geoff Sorbello at
Okapi Partners LLC, which is advising Mangrove Partners, toll free
at 1-877-285-5990.
SOURCE Mangrove Partners