Wednesday, July 26, 2006

Whitebox Advisors Discloses 5% Stake in Parlux (PARL)

In an 13D filing after the close on Parlux Fragrances Inc. (Nasdaq: PARL), Whitebox Advisors LLC disclosed a 5.01% (909K share) stake in the company, saying the company would benefit from a buy-back of a material portion. NOTE: Pike Capital disclosed a 5% stake last Wednesday.

From the 'Purpose of Transaction' section of the filing:

"The purpose of the transaction was to acquire the shares for investment purposes with the aim of increasing the value of the Reporting Person’s investment and the financial condition of the Issuer.

On July 13, 2006, WA expressed its opinion to management that the Issuer’s shareholders would benefit from a buy-back of a material portion of its shares. Towards that objective, WA has expressed an interest to management in providing debt funding for such transaction. WA believes that a share buy-back, regardless of whether funded by debt provided by WA, funded by debt from other sources, or funded by the sale of assets, would be beneficial to shareholders"


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