Hennessy Funds to Acquire Henlopen Fund
15 Marzo 2005 - 10:30PM
PR Newswire (US)
Hennessy Funds to Acquire Henlopen Fund NOVATO, Calif., March 15
/PRNewswire-FirstCall/ -- Hennessy Advisors, Inc. (OTCBB:HNNA)
based in Novato, California, announced today that it has signed a
definitive agreement with Landis Associates LLC and Michael L.
Hershey for Hennessy Advisors to purchase assets related to the
management contract for the Henlopen Fund (HENLX). The Henlopen
Fund is a Growth Fund with approximately $340 million of assets
under management. The cash purchase price being paid by Hennessy is
2.25% of the assets under management on the date that the
transaction closes and will be paid at closing. Landis Associates
LLC and Michael L. Hershey are located in Kennett Square,
Pennsylvania. The announcement was made jointly today by Neil
Hennessy, President of Hennessy Advisors, and Michael L. Hershey,
President of Landis Associates. As a part of the transaction,
Hennessy Advisors will become the successor manager of the Henlopen
Fund utilizing the Hennessy Cornerstone Growth Strategy. The
transaction will be tax-free for Henlopen fund shareholders.
According to Mike Hershey, "In the current regulatory environment,
it has become increasingly difficult to cost-effectively manage a
stand-alone mutual fund. Accordingly, we believe that the
shareholders of the Henlopen Fund will be best served through this
affiliation with the Hennessy family of funds. We selected Hennessy
because of their history of solid performance, comparable
investment style, and their reputation for quality service to
shareholders. The Hennessy Cornerstone Growth Fund is on a very
short list of funds in our category that have matched or exceeded
our past performance." Mike Hershey added, "Our shareholders will
also benefit immediately by gaining ready access to Hennessy's well
respected family of funds and through a lower expense ratio. I feel
comfortable and confident that Henlopen shareholders will be well
served now and in the future." Henlopen shareholders can visit
Hennessy's web site at http://www.hennessyadvisors.com/ or
http://www.hennessyfunds.com/, to obtain detailed information on
Hennessy Advisors and their mutual funds. Neil Hennessy said, "We
are very pleased to have been selected by Landis Associates and
look forward to welcoming the shareholders of the Henlopen Fund. We
share those values upon which the Henlopen Fund was based -- an
unending commitment to the creation of value for our fundholders
through a combination of investment performance, low expenses and
quality service -- and we are very proud of our track record in all
of these areas." Among other terms and conditions, the completion
of the transaction is subject to regulatory approvals and the
approval of the Henlopen Fund shareholders and Trustees who will be
asked to approve the assignment of the advisory contract. Hennessy
and Landis expect to send proxy information to Henlopen
shareholders within the next few weeks. Based on the current net
asset value of the Henlopen Fund, total assets managed by Hennessy
Advisors, Inc. will exceed $1.75 billion on a pro forma basis. As
in the past, current Henlopen shareholders can continue to call
866-880-0032 for information on their account. Henlopen
shareholders can visit Landis Associates' website at
http://www.landisassociates.com/ or Hennessy's web site to obtain a
copy of this press release. Hennessy Advisors, Inc. is the advisor
to five no-load mutual funds, satisfying a variety of investment
horizons and risk tolerance levels for equity investors. Each of
the Hennessy Funds employs money management approach combining
time-tested stock selection formulas with unwavering discipline and
consistency. Hennessy Advisors, Inc. serves clients with integrity,
honesty and candor. Forward-Looking Statements Statements in this
press release regarding Hennessy Advisors, Inc.'s business that are
not historical facts, are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements involve a number of risks,
uncertainties and other important factors that could cause the
actual results and outcomes to differ materially from any future
results or outcomes expressed or implied by such forward-looking
statements. These risks, uncertainties and other important factors
are described in more detail in the "Risk Factors" section of the
company's annual report on Form 10-KSB for the fiscal year ended
September 30, 2004, filed with the U.S. Securities and Exchange
Commission, including, without limitation, the "Risk Factors"
section of Management's Discussion and Analysis and Results of
Operations. The following factors could affect the actual results
of the company: -- The Henlopen acquisition is subject to numerous
conditions, including financing, and closing therefore is not
assured. -- Henlopen shareholders may increase redemptions as a
result of the change in investment advisors. -- Volatility in the
equity markets may cause the levels of assets under management to
fluctuate significantly. -- Weak market conditions may lower assets
under management and reduce Hennessy's revenues and income.
Supplemental Information Nothing in this press release shall be
considered a solicitation to buy or an offer to sell a security to
any person in any jurisdiction where such offer, solicitation,
purchase or sale would be unlawful under the securities laws of
such jurisdiction. For more complete information about the Hennessy
Funds, including fees and expenses, call 800-966-4354 to obtain a
free prospectus. Read it carefully before you invest or send money.
The distributor for the Hennessy Funds is Quasar Distributors, LLC.
DATASOURCE: Hennessy Advisors, Inc. CONTACT: Terry Nilsen of
Hennessy Advisors, Inc., +1-415-899-1555 or Fax: +1-415-899-1559
Web site: http://www.hennessyadvisors.com/
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