PRINCETON, NJ / ACCESSWIRE / October, 21, 2016 / Eric Weinstein is the beneficial owner of 260,000 shares of common stock of Female Health Company ("FHCO") (NASDAQ: FHCO), representing approximately 1% of the outstanding shares. On April 6, 2016, FHCO and Aspen Park Pharmaceuticals, Inc. ("APP") announced a stock-for-stock merger (the "Merger"), in which stockholders of FHCO would own only 55% of the shares of the combined company. On October 14, 2016 FHCO adjourned the Special Meeting of Shareholders to vote on the proposed Merger for a third time.

In a strongly worded letter sent yesterday to all members of the Female Health Company Board of Directors, Mr. Weinstein announced that he opposes and does not intend to change his vote against the proposed Merger for the following reasons:

  • FHCO shares are down over 60% since just before the announcing the proposed merger
  • Proposed CEO of combined entity oversaw 89% shareholder value destruction at GTx, Inc. (Nasdaq: GTXI)
  • Proxy Advisor Institutional Shareholder Services (ISS) recommends voting AGAINST the Merger
  • Yields executive and board control to a two-employee start-up with $136 million in capital needs that private investors seem unwilling to fund and public investors appear unwilling to value
  • Intended as a merger of equals but seems like a Series A venture investment in a start-up pharma for a few board seats
  • Proposed as solution to diversification needs but only introduces product development risk as combination fundamentally remains a single product company
  • Turns a stable, debt-free, cash flow positive company into one projected to lose more than $100 million over the next few years
  • Board stewardship of an undiversified condom manufacturer with a 90% stock price decline over last three years is no pedigree for early-stage pharma investment acumen
  • Frustration with board's strategy of repeated special meeting adjournments until it gets the vote it likes instead of acting clearly in the best interests of all shareholders

The full text of the letter can be found here.

Additional Information

The proposals for the approval of the Merger are more fully described in the Schedule 14A filed by FHCO with the Securities and Exchange Commission on August 8, 2016, which includes a proxy statement and further modified in the Form 8-K filed by FHCO with the Securities and Exchange Commission on October 6, 2016. Mr. Weinstein is not soliciting votes of other shareholders, but only informing other shareholders of FHCO of his voting intentions and reasons for opposing and voting against the Merger. The information and opinions contained in this material are derived from publicly available information. None of the information provided herein is intended to be relied upon as investment advice.

CONTACT: Eric Weinstein, 917-589-9012 or eric@chancellorcapital.com

SOURCE: Eric Weinstein