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Investor buys founder’s stake in TSR

July 27, 2018

Investor Zeff Capital LP, which last year sought to acquire all the shares in IT staffing provider TSR Inc. (NASD: TSR), has upped its stake to 19.5% of the company.

TSR Founder Joseph Hughes and his wife, Winifred, sold their stake in the company to Zeff Capital, QAR Industries Inc. and Fintech Consulting LLC, according to a filing with the US Securities and Exchange Commission.

TSR is in the process of reviewing strategic alternatives, including a possible sale of the company, after the Hughes had asked the board of directors to pursue a sale of the company. The request came to the company via a June 25 letter on their behalf from their son, James Hughes.

The transactions under the share purchase agreement closed July 23 and include all 819,491 shares of common stock held by the Hugheses. The purchase price of $6.25 per share is $5.1 million in the aggregate.

Zeff Capital in May 2017 offered to acquire TSR for $6.15 per share in cash, saying it has lost patience with the company. The buyers of the founder’s shares now own 41.8% of the company’s stock; Zeff Capital already owned 4% prior to the transaction, and now holds a 19.5% stake, according to the SEC filing.