Bloomberg 9/6 2022 story https://bondevalue.com/news/softbank-nears-sale-of-fortress-investment-to-mubadala-at-2bn-valuation SoftBank is on track to complete a deal to sell its Fortress Investment stake to Mubadala at more than $2bn valuation. As per sources Rajeev Misra, the key person at SoftBank Investment Advisers and formerly a partner at Fortress, is coordinating the deal with a likely agreement to be announced over the coming weeks. SoftBank bought Fortress in 2017, aiming to utilize the US-based investment management firm’s specialties to help manage its Vision Fund. As of December 2021, Fortress had and AUM of $53.3bn. https://www.bloomberg.com/news/articles/2022-09-06/abu-dhabi-s-mubadala-said-to-near-2-billion-deal-for-fortress
Mubadala Investment Co has increased its purchase price from $1B to $2B. This price should also include Fortress’ recent termination of their very lucrative management agreement that externally managed $NRZ New Residential Investment Corp now $RITM Rithm Capital creating $400M Termination Fee for Softbank (part of their buyback price). This decision to terminate $NRZ management agreement also frees Fortress and/or EJF Capital to manage another new MREIT like the relaunched of $NOVC former tax exempt MREIT NYSE Novastar Financial Inc. $NFI or whatever name the assign to this MREIT. $NFI sits on rights that control the future use of BILLIONS in rich, seasoned collateral assets seasoned with 600 Bpts WAC ideal assets to be leveraged/resecuritized into MREIT dividend just like NOVC Board and Fortress did at Dynex Capital NYSE $DX 2000-03. Today $DX pays Barry Igdaloff, Howard Amster, Todd Emoff and Thomas Akin and others in their investor cabal .13 cts per DX Common every single month $1.56 annual. $DX trades at 13.39% yield today.
1st spin out Novation Companies, Inc. $NOVC former tax exempt MREIT traded on NYSE $NFI and use CCR (per SRTA Section 5.04) that control billions of seasoned collateral assets 600 Bpts WAC. Collateral Assets that can be leveraged 15 to 1 aka combined with other MBS RMBS assets into $45B Risk Adj Portfolio; to illustrate $NOVC Portfolio (see Edgar Reports for $NFI Bond Remittance Reports) est. $3 Billion x 15 times leverage, creates a $45B risk adjusted portfolio x NIM net interest margin of 500 Bpts NIM of $2.250B less some SGA and Loan Losses over X common shares outstanding dilute (assumes Fortress/EJF Capital exercise their 22.250M Ten Year Warrants) CSOS 116.1M equates to MREIT dividend $19/share. Reality includes many variables, but you can substitute even $2.00/year in dividends depending on how many Common Equivalents PS Series F $NOVC issue (see Oct 2018 Proxy 14A page 12. There are as many as 500M common equivalents that can be issued at price of $2.33/share. While this is dilutive to common it would be accretive to book value as the same investors that own 91M $NOVC common also own the only Sr Debt to exit Ch 11. Let us assume $NOVC relaunched MREIT creates only $2.00 per share annual dividend. Say the annual dividend is just $2.00 per share annually and it trades at $DX yield of 9% that is $22 share price for just MREIT.
2nd Tax Free Company like Drive Shack $DS will be $NOVC only operating unit today www.healthcare-staffing.com HCS. Their goal will be to monetize $730M NOLs Est $5/share. If $NOVC merges HCS with Jeff Eberwein, CEO of Hudson Global $HSON it would create a $225M public co tax free. This will explain why Jeff Eberwein ex Soros and ex Viking Global Mgt Portfolio Manager and his HF Lone Star Value Mgt have filed millions of common share BUYs see Forms 4s at $HSON and $NOVC (April to Oct 2015).
This will take Novation Co Inc. $NOVC from a worthless common share today (below one cent thanks to Board FUD in SEC flings) and create two tax free public stocks 1st MREIT $22/share 2nd Healthcare Company with $730M NOLs at estimate $5/share or $27/share in aggregate plus $2.00 annual dividends. Fortress picks up another lucrative management fee to replace $RITM termination agreement. This is just like $NOVC Board (Barry Igdaloff and Howard Amster) and Fortress did in restructuring 2000-03 Dynex Capital $DX. $DX today declares annually $1.56/common dividend payable .13 cts every month. This is just what Wesley R. Edens, CEO of both Newcastle/Fortress did in restructuring Newcastle $NCT by spin out 3 tax-exempt MREITs $GCI, $SNR sold months ago for $2.3B and $NRZ now traded $RITM which paid Fortress over $150M annually in external management fees. Fortress termination of this mgt agreement handing Fortress parent Softbank $400M Termination Fee. After Fortress spun these 3 tax-exempt MREITs out of Newcastle $NCT they changed the name and symbol to Drive Shack $DS which kept all the $160M NOLs, read Dec 2016 Wesley Edens, COB own presentation to Newcastle aka Drive Shack $DS Shareholders. Ask Investor Relations at Newcastle NCT aka now Drive Shack $DS for Wesley Edens, COB Shareholder Presentation Dec 2016.
In summary the track records and accomplishments of these investors strongly suggest these investors after they once again hold Fortress’ check book will split Novation Co $NOVC into 2 tax free companies a tax exempt MREIT by relaunching $NFI (changing the name like Fortress did at New Residential Inv Corp $NRZ now Rithm Capital $RITM). The 2nd tax free company will include $NOVC $730M NOLs and their only operating unit today www.healthcare-staffing.com HCS. This is where investors I introduced to Barry Igdaloff and Howard Amster come in. Whitney Tilson via email introduced me to Chuck Gillman and Jeff Eberwein calling them his Small Cap Guys. I arranged a phone call November 2014 and by spring of 2015 they and Igdaloff, Amster had secured control of Novation Co $NOVC Board of Directors. 2015 they ousted ex $DX Dynex Capital executive than CEO of $NOVC Lance Anderson and stripped him of 4.3M Stock Options. They also ousted from $NOVC Board Lance Anderson’s mentor Gregory Barmore (former CEO of Genworth and top 100 executive under Jack Welch at GE) and their appointees Edward Mehrer and eventually 2016 Art Burtscher. I asked Igdaloff and Amster how did they remove theses executives’ carrot or stick. Answer silence.
Jeff Eberwein was former CEO/COB of Novation Co $NOVC. Now he is CEO/COB of Hudson Global $HSON. Jeff Eberwein or his cabal Chuck Gillman, Whitney Tilson are not your average investors. Eberwein is ex Wharton MBA and was Portfolio Manager at both George Soros - Soros Investments and Viking Global Mgt. Jeff Eberwein bought millions of $NOVC common between April to October 2015 via his HF Lone Star Value Management now Star Equity Holdings $STRR see Form 4s. He also has been buying hand over fist Hudson Global $HSON common see Form 4s. This could be anticipating a merger with Novation Co only operating unit www.healthcare-staffing.com so as to monetize $NOVC $730M NOLs. As stated, these investors concealed $730M NOLs by writing them off based on a temporary GAAP Going Concern, which is created by failing to disclose the same investors Fortress/EJF Capital own at same time $NOVC only Sr Debt and 80% of all common with their co investors (27% or 31.3M shares for just themselves). Jeff Eberwein JE is connected to Chuck Gillman, Whitney Tilson and designates they appointed to $NOVC shortly after being fined 2017 almost half million by SEC https://www.sec.gov/litigation/admin/2017/34-80038.pdfB
These $NOVC Board of Directors including these designates soak up most of the 16M RSUs at pennies converting board compensation at pennies per share a share price they engineered via FUD fear, uncertainty & disinformation in SEC flings. This NOVC Board has delivered nothing but FUD fear, uncertainty and disinformation in SEC filings, during their appointment as Board Members. These appointees have a close relationship with Chuck Gillman and Jeff Eberwein and their cabal and include David Pointer 4M RSUs, Lee Keddie, Tim Eriksen took 1.33M RSU each and Robert Pearse ex VP Corporate Development at both Network Appliance Corp $NTAP and Hewlett Packard $HP.
Boulay Group $NOVC outside auditor and CPA firm and $NOVC Board by concealing the above temporarily create a GAAP Going Concern which repels other investors (as Jason Stewart stated no one cares about a penny stock and this surely they count on) and provide the basis to take 47M $NOVC common shares 41% at pennies; Board handed Note Holders Fortress/EJF Capital 31.3M shares at below one cent then converted some of their Board Compensation into 16M RSUs restricted stock units’ common shares at pennies per share. They then camouflage most of these shares by either leaving the Board or filings Bogus Form 4s that mislead Mr. Market to believe they sold millions of their Common Shares at rock bottom prices when they have parked those shares at related accounts aka transfer shares to these entities. https://www.globenewswire.com/news-release/2019/08/09/1900133/0/en/novation-companies-inc-executes-first-amendment-to-senior-secured-note-purchase-agreement.html