Shares of Support.com, Inc. (SPRT) stock were falling today after the launching of investigations against SPRT by many law firms.SPRT stock price was down by 3.59% to drop at $6.17 a share as of this writing. The SPRT stock was gloomy in the previous open market and its closing price was $6.40 with a 9.86% drop. Let’s see what is happening.
Investigations against SPRT stock
Things were gloomy for SPRT stock and the recent announcement of investigations against SPRT stock by law firms contributed more pain to the falling stock price. Law firms including Bragar Eagel & Squire, P.C., Rigrodsky Law, P.A.Halper Sadeh LLP, and Moore Kuehn, PLLC have recently launched investigations against Support.com to investigate whether the SPRT has violated federal securities law, or its board of members breached their fiduciary duties in connection to Support’s proposed merger with Greenidge Generation Holdings Inc. The law firms have encouraged the shareholder to contact them to learn more about investigations and their rights.
Merger Agreement
On March 22, 2021, Support.com did sign a merger agreement with bitcoin mining company Greenidge Generation Holdings Inc according to which, SPRT shareholders would receive 0.124 shares of Greenidge common stock for every owned share of Support.com common stock. In response to that merger agreement, Support.com shares were traded on massive volumes on March 22, 2021, and the per-share price soared by 231.8%, the highest rise since September 2014.
Financial Overview
In the third quarter of 2020, SPRT stock generated $10.3 million in revenue which was 32 percent less than the same quarter of the prior year. The loss was mainly due to the migration of its services to another country. At the end of the third quarter, SPRT stock had $29.7 million cash equivalents and short-term investments as compared to $44.8 million at the same time of 2019.
Conclusion
Things are going against the SPRT stock as far as market sentiment is concerned. Let’s see how the management of Support.com will react to these investigations. If things become settle, then there are chances for the SPRT stock to perform well in the future. Hence investors need to be aware of any single circumstance related to SPRT stock.
