Red Oak accepts 984,706 shares of Female Health in $2.27 per share tender offer

By Lisa Kerner

Charlotte, N.C., May 9 - The Female Health Co. investors led by Red Oak Partners, LLC said the $2.27 per share tender offer for up to 1.2 million shares of the company's common stock expired on April 30, with 984,706 shares tendered and guaranteed delivery of another 50,541 shares.

The investors used cash on hand of $2,350,011 to fund the offer, according to a schedule 13D filing with the Securities and Exchange Commission.

Red Oak, a privately held investment fund, made the offer for investment purposes and said it represented "a more expeditious manner for us to acquire shares given the limited liquidity in the trading market for the shares," the filing stated.

The investors are satisfied with Female Health's management and policies; however, Red Oak may engage in discussions with management, the board and other stockholders, subject to the standstill agreement in place.

"We have executed a standstill agreement with the company agreeing that for a period of up to one year we will not seek representation on the board, and we have no plans to seek, propose or assist anyone else with the change of control," Red Oak managing director David Sandberg said in a previous news release.

Red Oak beneficially owns 1,530,410 shares, or 6.2%, of the Chicago-based consumer health products company's outstanding common stock.

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