Shareholders Foundation, Inc.

Heelys, Inc. (NASDAQ:HLYS) Investor Alert: Investigation of Buyout by Sequential Brands Group

An investigation on behalf of investors of Heelys, Inc. (NASDAQ:HLYS) in connection with the proposed takeover was announced and NASDAQ:HLYS stockholders should contact the Shareholders Foundation.


San Diego, CA -- (SBWIRE) -- 12/12/2012 -- An investigation on behalf of investors in Heelys, Inc. (NASDAQ:HLYS) shares was announced concerning whether the offer by Sequential Brands Group to acquire Heelys, Inc. for $2.25 per NASDAQ:HLYS share and the takeover process are unfair to investors in Heelys shares.

Investors who purchased shares of Heelys, Inc. (NASDAQ:HLYS) prior to Dec. 10, 2012, and currently hold any of those NASDAQ:HLYS shares have certain options and should contact the Shareholders Foundation at mail(at) or call +1(858) 779 - 1554.

The investigation by a law firm concerns whether certain officers and directors of Heelys, Inc. breached their fiduciary duties owed NASDAQ:HLYS investors in connection with the proposed acquisition.

On Dec. 10, 2012, Heelys, Inc. and Sequential Brands Group, Inc. announced they have entered into an agreement and plan of merger dated December 7, 2012 pursuant to which Sequential Brands Group will acquire all of the outstanding shares of common stock of Heelys for $2.25 per share in cash, or approximately $63.2 million. Heelys also announced that the company terminated the previously-announced asset purchase agreement dated October 22, 2012 among The Evergreen Group Ventures, LLC ("Evergreen"), the Company and its subsidiaries and that the Heelys, Inc has agreed to pay Evergreen a termination fee, which, pursuant to the Merger Agreement, will be reimbursed by Sequential Brands Group.

However, shares of Heelys, Inc. (NASDAQ:HLYS) traded as recently as April 2012 as high as $2.60 per share, thus above the current offer.

Therefore the investigation a law firm concerns whether the proposed transaction is unfair to NASDAQ:HLYS stockholders.

Specifically, given that in connection with the Merger Agreement, Capital Southwest Venture Corporation and another stockholder of Heelys, Inc, who collectively hold approximately 35.1% of the issued and outstanding shares of the Heelys's common stock, have already entered into voting agreements with Sequential Brands Group, Inc pursuant to which they have agreed, among other things, to vote their shares in favor of the merger, the investigation focuses on whether the Heelys 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 Heelys, Inc. (NASDAQ:HLYS), have certain options and should contact the Shareholders Foundation.

Shareholders Foundation, Inc.
Jacob Rosenfeld
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739