Mudrick Capital stock(MUDS) was dropping in pre-market following the commencing of investigation against MUDS stock by Levi & Korsinsky, LLP. Furthermore, Topps announced the termination of the merger agreement with MUDS stock. MUDS stock price saw a downtrend of 7.02% today to drop at $9.40 a share at the time of this writing. The stock went low in the previous trade by 2.13% at closing. Let’s take a closer look at recent events.
What’s Happening?
Mudrick Capital Acquisition Corporation II is a blank check stock that does not operate on its own. This stock runs its business by a share exchange, share purchase, effecting a merger asset acquisition and reorganization or similar combination with other businesses. The stock trading volume has been more than average since the beginning of this week. Levi & Korsinsky, LLP started investigations against MUDS stock’s, merger with Hycroft Mining Holding Corporation to check fairness. The main concern of the merger investigation is to check
- Any harm to stockholders by MUDS board via entering into this transaction.
- Whether MUDS stock disclosed all the material facts clearly to its stockholders.
Topps to Terminate Merger Agreement with MUDS stock:
Recently today The Topps Company announced the termination of the merger agreement with MUDS stock by mutual agreement. Topps will continue to operate as a private company. Prior to this announcement, MUDS stock on August 17, 2021, reminded its stockholders to vote for a business combination with Topps. MUDS had called the meeting on August 25, 2021, for approval of this business combination and other related proposals.
A look at History:
Mudrick stock on January 13, 2020, executed the merger agreement with the predecessor to Hycroft Mining Holding Corporation. The record date for the shareholder vote for this merger was April 17, 2020. The transaction closed on May 29, 2020, and Hycroft remained the successor entity.
Hycroft at the beginning of October 2020 announced an offering of 9.5 million shares of common stock. The offering also included the same number of immediately exercisable warrants. The net proceeds resulted from this offering were $83.1 million. In response to this news, the share dropped by 16% at that time.
In March, Hycroft announced fiscal 2020 results and outlook for 2021 after which the shares dropped by 28%. At that time the per-share price was $4.96.
Wrap Up:
Things are not favorable for MUDS stock as far as market sentiment is concerned. It would be interesting to see how the MUDS board will react to the investigations by Levi & Korsinsky, LLP. Individuals eyeing this stock must be cautious before making any decision.
