Premier Exhibitions Inc. (PRXI) chairman Mark A. Sellers is no longer selling his 31% stake to Armada Group GP Inc. as previously announced, leaving some wondering whether the shareholder is steering towards a more transformative deal for the exhibitions company best known for assets associated with the RMS Titanic shipwreck.
"I don't think [the busted deal] impacts the sale of the Titanic assets at all," said activist investor Andrew Shapiro, portfolio manager and president of Lawndale Capital Management LLC, which holds a less than 5% stake in the Atlanta-based organizer of traveling exhibitions. "Sellers is most eager for the Titanic assets to be monetized."
Sellers, president of Northbrook, Ill., investment management firm Sellers Capital LLC, announced on Oct. 22 that he had reached an agreement on Oct. 15 to unload his approximately 15.4 million shares to Armada Group, a Palm Bay, Fla.-based investment firm led by George Wight, for about $16.2 million.
But in a Nov. 25 13D filing with the Securities and Exchange Commission, Sellers states that the buyer had not met all of the closing conditions as of Nov. 20, and that by Nov. 25, Sellers concluded that Armada Group didn't plan on fulfilling the necessary obligations.
Sellers declined comment Tuesday.
While Sellers provides minimal explanation for why the deal didn't close, the shareholder hints that an alternative solution to achieving monetization of his shares will be pursued.
"The Reporting Persons are exploring their options with respect to enforcing the terms of the Agreement and/or obtaining suitable remedies for the Buyer's failure to satisfy the Closing Conditions," Sellers states in the filing.