NEW YORK, March 17, 2014 /PRNewswire/ — Tripp Levy PLLC, a leading securities and shareholder rights law firm that represents shareholders throughout the nation, announces that it is investigating the acquisition of Hastings Entertainment, Inc. (NASDAQ: “HAST”) on behalf of shareholders. Hastings Entertainment, Inc. (HAST), has entered into an Agreement to be acquired by entities owned by Joel Weinshanker. Mr. Weinshanker is the President and sole shareholder of National Entertainment Collectibles Association, Inc., which owns approximately 12% of Hastings’ outstanding shares (“NECA”).
Pursuant to the Merger Agreement, each share of Hastings common stock held by a shareholder of Hastings (other than Mr. Weinshanker and his affiliates) will, upon completion of the merger, be converted into the right to receive a cash payment of $3.00 per share. In addition, the CEO of HAST, and related beneficial owners who together hold approximately 32% of Hastings’ common stock, and NECA have each entered into agreements in which they have agreed to, among other things, vote all shares over which they have exercisable voting power in favor of the merger. As a result, holders of approximately 44% of the Hastings’ common stock have committed to vote for the merger.
The investigation concerns whether the board of directors and senior management of HAST and NECA breached their fiduciary duties by not engaging in a full and fair auction and process to sell the company so that shareholders received the maximum value for their shares, whether the CEO of HAST and Mr. Weinshanker are acting for their own self interests and not in the best interests of HAST shareholders, and whether the price of $3 per share is unfairly low. Indeed, analysts have projected that the true going forward inherent value of the company is worth at least $5 per share and the stock traded as high as $5.45 per share less than a year ago. Further, HAST’s book value alone is worth at least $7.57 per share (over 2.5x times what NECA is paying HAST shareholders).
If you are a shareholder of HAST and would like additional information regarding this matter, at no cost or expense, please contact us.