Redpoint Bio Corp. (OTCBB:RPBC), developer of flavor compounds, has hired Burrill & Co. to advise it on strategic alternatives. Redpoint CEO Ray Salemme said his company is pursuing this course of action while its balance sheet is strong. The Ewing, N.J.-based company is considering a range of alternatives from “acquiring synergistic assets to monetizing existing assets.” Redpoint third-quarter losses widened to $2.6 million from $1.9 million a year earlier, despite higher research and grant revenue in the latest period. As of Sept. 30, total assets stood at $19.6 million.
Phoenix Footwear Group Inc.’s (NYSE: PXG) board has formed a special committee to consider strategic opportunities. The committee is authorized to negotiate, pursue, accept or reject bids that will require shareholder approval. The committee will consider the sale of the entire company, or of one or more divisions. BB&T Capital Markets will serve as financial adviser. James R. Riedman, chairman and largest shareholder of the Carlsbad, Calif.-based footwear designer, is interested in forming a group to make a proposal. For the third quarter, Phoenix Footwear swung to a loss of $2.1 million from a profit of $11.1 million a year earlier on weaker-than expected performance from all its brands.
Digital Ally Inc. (Nasdaq: DGLY) has hired and plans to collaborate with Banc of America Securities LLC to consider strategic alternatives designed to improve shareholder value. The developer and maker of video surveillance products didn’t identify the options it intends to review. Digital Ally’s third-quarter net income fell to $873,609 from about $3 million a year earlier period that included an income tax benefit of roughly $2.2 million. The Overland Park, Kan.-based company said the U.S. economic recession has reduced the tax revenue of many state, county and local governments, which in turn has forced some law enforcement agencies to delay equipment purchases.
Metallic Ventures Gold Inc.’s (Pink Sheets: MTLVF) board has decided to start a formal review of strategic alternatives. The gold exploration-stage concern also created a special committee to oversee the process and hired Blair Franklin Capital Partners Inc. as an adviser. Metallic Ventures will evaluate the sale of the entire company. The sale of some of its assets is another alternative on the table. The Vancouver, Canada-based company’s third-quarter earnings fell to $96,813 from $724,438 a year earlier as revenue from royalty income dropped to $705.643 from $1.7 million. The company ended September 2008 with working capital of $11.6 million, down from $12.3 million at the end of 2007.