Eric K. Chan made a tender offer to acquire remaining 36.79% stake in Dynacq Healthcare Inc. (OTCPK:DYII) not already owned by the Chan family trust for $0.5 million on December 18, 2015. Currently, the Chan family trust holds 8.59 million shares in Dynacq Healthcare representing 63.21% stake. As part of consideration, Eric Chan offered $0.1 per Dynacq shares not already owned by the family trust.

The tender offer commenced on December 18, 2015 and will expire on January 20, 2016. The transaction is expected to be funded through available cash resources and will result in a going private transaction if more than 90% shares are tendered. Subsequent to the acquisition, the shares of Dynacq will no longer trade on any market and Dynacq will no longer be a public company.

The transaction is subject to several conditions including majority-of-the-minority and ninety percent conditions. D.F. King & Co., Inc. acted as information agent to Eric Chan and Chan family trust and agreed to serve for a fee of $8,000. As of January 20, 2016, 4.05% stake was acquired.

The offer expired on January 20, 2016. Post offer expiration, 0.55 million shares were tendered. All shares validly tendered and not withdrawn have been accepted for purchase.

On January 21, 2016, the Purchaser announced its waiver of the Majority of the Minority Condition and the 90% Condition. As of January 22, 2016, tender offer has been extended till February 5, 2016. American Stock Transfer & Trust Company, LLC acted as the depository in the transaction.

Kai Haakon E. Liekefett of Vinson & Elkins LLP acted as legal advisor to Eric K. Chan.