FUNDS TO ACQUIRE HENLOPEN FUND
CA – March 15, 2005 - 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.
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
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.”
shareholders can visit Hennessy’s web site at www.hennessyadvisors.com
or www.hennessyfunds.com, to obtain detailed information on Hennessy
Advisors and their mutual funds.
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.”
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.
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 www.landisassociates.com
or Hennessy’s web site to obtain a copy of this press release.
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.
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:
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.
Nothing in this section 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.