Yesterday, my limit order for 499 shares of FragranceNet.com (FRGN) at $0.58 per share was executed. I purchased these shares in my son’s Coverdell ESA account.
I first reported about FragranceNet.com going private on May 26. FrangranceNet.com is planning to conduct a reverse split where 500 shares will equal 1 share. Shareholders holding less than 500 shares will receive $0.97 per share in cash. The cash tender offer is a 67 percent premium to my purchase price. My total cost of aquiring those 499 shares yesterday was $297.37. I expect to receive $484.03 within a year for those shares of FragranceNet.com. If there are no additional costs, that would give me a profit of $186.66. That’s not a huge amount, but it is a nice rate of return.