The announcement of a merger agreement typically leads to positive investor sentiment as it often implies growth, expansion, or a strategic move that could benefit the company in the long run. In this case, SCX's decision to go private with MiddleGround Capital suggests a strategic shift that has been well-received by the market, as reflected in the stock's price increase. This positive reaction is likely due to the anticipation of operational improvements or financial restructuring that could enhance the company's value.