Why Troika Media Group Shares Are Getting Hammered
Portfolio Pulse from Henry Khederian
Troika Media Group Inc (NASDAQ:TRKA) shares plummeted by 67.6% to $0.38 as the company announced its acquisition by Blue Torch Finance LLC amid Chapter 11 bankruptcy proceedings. The deal includes a stalking horse credit bid and a court-supervised auction. Troika has secured $11 million in financing from its lenders and aims to continue operations with minimal disruption, transitioning to a private company.
December 07, 2023 | 4:58 pm
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Troika Media Group's stock has significantly dropped after announcing its acquisition through Chapter 11 bankruptcy, with the intention to operate as a private entity post-sale.
The sharp decline in TRKA's stock price is a direct result of the acquisition announcement during bankruptcy proceedings, which typically dilutes shareholder value and indicates financial distress. The transition to a private company also means the eventual delisting of shares, further justifying the negative impact on the stock price.
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