An investigation on behalf of investors of Dreams, Inc. (NYSEAMEX:DRJ) in connection with the takeover was announced and NYSEAMEX:DRJ stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 04/18/2012 -- An investigation for investors in NYSEAMEX:DRJ shares concerning whether the offer to acquire Dreams, Inc. at $3.40 per share and the buyout process are unfair to investors in Dreams, Inc. (NYSEAMEX:DRJ) was announced.
Investors who purchased shares of Dreams, Inc. (NYSEAMEX:DRJ) prior to April 17, 2012 and currently hold any of those NYSEAMEX:DRJ shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigations by law firms concern whether certain officers and directors of X Dreams Inc, breached their fiduciary duties owed to NYSEAMEX:DRJ investors in connection with the proposed acquisition.
On Monday, April 17, 2012, Dreams, Inc. (NYSE Amex: DRJ) announced that it has signed a definitive merger agreement with Fanatics, Inc. Under the terms of the agreement Fanatics, Inc will acquire all the outstanding shares of Dreams, Inc for $3.45 per share in cash for an aggregate transaction value of approximately $183 million, taking into account $25 million of outstanding debt. Dreams, Inc said the $3.45offerr represents a premium of 32.0% over Dreams’ closing share price of $2.61 on April 13, 2012, the last trading day prior to this announcement.
Following the takeover news shares of Dreams, Inc. (NYSEAMEX:DRJ) jumped from $2.63 on Friday, April 13, 2012 to $3.40 per share on Monday.
However, at least one analyst has set the high target price for AMEX: DRJ shares at $5 per share, well above the current $3.4offer. Additionally, Dreams’ financial performance increased over the past recnet years. Dreams, Inc. reported that its annual Revenue rose from $81.44million in 2008 to $141.50million in 2011 and its Net Loss of $1.61million in 2008 turned into a Net Income of $1.23million in 2011.
Furthermore, Dreams President and CEO Ross Tannenbaum, Chairman Sam Battistone and other shareholders who collectively own approximately 35% of the outstanding shares of Dreams have each already entered into voting and support agreements by which they have committed to vote in favor of the proposed merger transaction.
Therefore the investigation for NYSEAMEX:DRJ investors concerns whether the proposed transaction is unfair to Dreams, Inc. (NYSEAMEX:DRJ) stockholders.
Specifically, the investigation focuses on whether the Dreams Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.
Those who are current investors in Dreams, Inc. (NYSEAMEX:DRJ) and purchased their Dreams, Inc. (NYSEAMEX:DRJ) shares prior to the announcement, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego