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NOVATO, Calif. - Hennessy Advisors, Inc. (NASDAQ:HNNA), an investment management firm with a market capitalization of $81 million and impressive revenue growth of 38% over the last twelve months, has entered into a definitive agreement to acquire assets from STF Management, LP, specifically two Exchange-Traded Funds (ETFs), with the transaction expected to finalize in Q3 2025. According to InvestingPro analysis, the company currently trades at an attractive P/E ratio of 9.03 and shows signs of being undervalued. The deal, which involves the STF Tactical Growth ETF (TUG) and the STF Tactical Growth & Income ETF (TUGN) with combined assets of approximately $220 million, aims to broaden Hennessy’s ETF offerings.
Post-acquisition, these STFM ETFs will be rebranded as Hennessy Funds and managed by Hennessy Advisors, which maintains strong financial health with a current ratio of 18.29 and liquid assets well exceeding short-term obligations. Jonathan Molchan, a portfolio manager with two decades of experience in derivatives strategies and risk management, will continue to oversee the funds’ daily operations.
Teresa Nilsen, President and COO of Hennessy Advisors, described the acquisition as a key part of the company’s growth strategy and expressed enthusiasm for strengthening their ETF market presence. Molchan also expressed confidence in the benefits this transition will offer to shareholders, citing Hennessy’s commitment to disciplined portfolio management and shareholder service.
The completion of this transaction is contingent upon regulatory approvals, including from the SEC, and the consent of the Hennessy Funds Trust Board of Trustees, Listed Funds Trust Board of Trustees, and the STFM ETFs’ shareholders. It is structured to qualify as a tax-free reorganization, meaning STFM ETF shareholders should not recognize any gain or loss for federal income tax purposes.
Hennessy Advisors is known for its broad range of funds and a buy-and-hold investment philosophy. STF Management, founded in February 2022 by Thomas Campbell and Jonathan Molchan, specializes in actively managed ETFs.
This press release, which contains forward-looking statements, does not constitute an offer to sell securities and is not a solicitation of a proxy from any shareholder of the STFM ETFs. Investors are advised to consider the investment objectives, risks, charges, and expenses of the STFM ETFs carefully before investing. InvestingPro subscribers can access additional insights, including 8 more ProTips and detailed financial metrics to make informed investment decisions.
The information in this article is based on a press release statement from Hennessy Advisors, Inc.
In other recent news, Hennessy Advisors reported a remarkable 136% increase in net income for the first fiscal quarter, reaching $2.8 million. The company’s total revenue surged by 58% to $9.7 million compared to the same period last year, and earnings per share rose by 125% to $0.36. Additionally, Hennessy Advisors declared a quarterly dividend of $0.1375 per share, with shareholders on record as of February 24, 2025, set to receive the dividend on March 6, 2025. The company also confirmed the appointment of CBIZ CPAs P.C. as its new independent registered public accounting firm for the fiscal year ending September 30, 2025. This change followed the decision by Marcum LLP not to stand for reelection. Furthermore, at their recent Annual Meeting, Hennessy Advisors’ shareholders re-elected all seven directors to the board and ratified the appointment of CBIZ CPAs P.C. as the accounting firm. These developments reflect the company’s ongoing efforts to maintain strong corporate governance and financial performance.
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