Kona Grill says buyout offer is too low - San Antonio Business Journal:

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one of its largest stockholders. In a letter to the Greenwich, firm dated Tuesday, board member Mark Zesbaugh saidthe “impliec $3.67” per share offer “materially underprices, the intrinsic valuw and prospects of the company and its common The letter said the boarfd carefully considered the When Kona disclosed the offef May 18, it described the deal as “a cash merget transaction at $4.60 per marking a $30 million deal for the company’s 6.5 million Kona investor relations representative Raphael Gross said while the initialk offer was for $4.
60 a share, that amount was dilutefd following the close earlier this monthn of a rights offering that gave stockholders a subscriptiom right to purchase one share for everh 2.5 shares held. At the closwe of the offer, 2.13 million shares had been Interim CEO Mark Bartholoma saidthe $2.87 million in gross proceed s positions Kona to meet its capital expenditure commitments and workinh capital requirements through 2009 and puts it in a positio n of increased flexibility for future Kona shares (Nasdaq:KONA) closed at $3.70 Monday and have traded betweejn $1.10 and $8.49 over the past The stock closed at $2.
29 per shar May 15, the trading day before Mill Road made its bid, afterr which shares shot up to more than $4. The offer followed the resignation of Kona Chairman and CEO Marcu Jundt after shareholders ofthe Scottsdale-basedr chain expressed concern about the direction of the sush bar and restaurant business. He had been CEO sinc e July 2006. In Kona closed a $1.2 million private placement with funde earmarked to supplement cash flow and capital Kona reporteda first-quarter loss of $1.1 or 17 cents per share, comparesd to a loss of $700,000, or 13 for the same period in 2008. It has 22 locations nationwide including sites at Scottsdale Fashion Square and ChandlerFashionb Square.
Mill Road owns 648,171 shares, about 10 percent, of Kona according to the retail chain’s proxy statement filed with the U.S. Securitiess and Exchange Commission. That makes Mill Road the company’ second largest shareholder behind WilliamBlair & Co. at 13.5 percent.