Troika Media Group (NASDAQ:TRKA) reported yesterday that it was notified by Nasdaq that TRKA stock will be suspended and delisted from the exchange on Dec. 18. Troika also disclosed yesterday that it had filed for bankruptcy — and that it had agreed to be acquired by Blue Torch Finance.
TRKA stock could possibly move to an over-the-counter market after Dec. 18. However, because the company has decided to sell itself and declare bankruptcy, the shares may stop trading publicly altogether come that date.
TRKA Stock: Troika and the Acquisition
Based in New York, Troika Media specializes in digital marketing solutions, “brand building and activation, marketing innovation and enterprise technology […] customer acquisition […] internal and external creative” and more, per Yahoo Finance.
Yesterday, Troika announced that it had agreed to be acquired by Blue Torch Finance. Under the deal, Blue Torch will buy Troika’s assets via a “stalking horse credit bid.” Additionally, the stalking horse credit bid will be “subject to competing bids via a court-supervised auction to ensure the highest or best possible price for the Company’s business.”
For those who don’t know, a stalking horse bid is an initial bid on the assets of a company going bankrupt. A stalking horse bid “sets the low-end bidding bar so that other bidders can’t underbid the purchase price,” per Investopedia.
Troika noted that its secured lenders are “supportive of the transaction.” The company has received $11 million in debtor-in-possession financing from its lenders so that it can stay in business amid the sale and bankruptcy process.
Interim CEO Grant Lyon said the following about the sale and bankruptcy news:
“We expect that the process will be relatively short and that the Company will have adequate liquidity to operate the Converge business normally throughout the process.”
Lyon also noted that the company expects to be privately held upon completion of the bankruptcy process.
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On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
