Shares of Premier Exhibitions Inc. (NASDAQ: PRXI) have been higher all day on word that G. Michael Harris’ company WLM, Inc. has made two offers that total $40 million on a combined basis of $40 million to the company. This does not look like an outright acquisition according to the press release, but it looks like a severe valuation game-change to what its exhibits would be worth.
The offers were made to Premier Exhibitions and to Sellers Capital for the right to enhance and expand RMS Titanic, a wholly owned subsidiary of Premier Exhibitions. WLM offered $25 million for an exclusive, multi-year management agreement of RMS Titanic to include all touring, expedition and salvage rights to the wreck of the RMS Titanic.
In a separate proposal, Mr. Harris offered $3.00 per share to Sellers Capital and its affiliates, which include Contango Oil & Gas (MCF), who are the beneficiaries of 4,778,399 shares of common stock of Premier Exhibitions. Their holding represents 16.3% of Premier’s outstanding shares, including all board and executive positions.
Mr. Harris is one of the original founders of RMS Titanic, Inc. With a share price of $1.37 and a market cap of $40 million, this might sound confusing. But it is a major percentage gain of some 98%. Again, this does not entail a full buyout on the surface. But it could and would likely adjust the valuations of Premier Exhibitions in a great way.
Jon C. Ogg