Debt-ridden Northview Corp., which earlier this year cut its last remaining ties with convicted arbitrager Ivan Boesky, on Monday signed a letter of intent to be acquired by Calmark Financial Corp. in a deal valued at $52.8 million.
According to the preliminary agreement, Northview would be acquired by Calmark, a privately held, Los Angeles-based real estate syndicator. The San Diego-based hotel chain would simultaneously pay $22 for each share of its 2.4 million outstanding common shares, according to the agreement. Northview, which operates the Vagabond Hotel chain, closed at 16 3/4 in over the counter trading Monday. The stock had traded at about 10 for the last few weeks.
The proposed deal is subject to approval by Northview's board of directors and the execution of a definitive agreement.
Calmark, which develops, manages and syndicates multi-family residential real estate projects, also owns 90% of American Adventure, a company that operates campgrounds in nine states.
Northview reported a $3.4-million net loss and $19.8 million in revenue for the first half ended June 30. Additional losses are anticipated during the remainder of the year because of interest payments on the company's $100 million in debt. That debt load includes $70 million in 15% subordinated debentures floated to finance Boesky's stock trading.