Renren Inc (NYSE: RENN) is having an incredibly strong start to the trading session in the premarket hours this morning, and for good reason. News broke with regard to a merger, exciting investors and sending the stock screaming for the top. Today, we’ll talk about:
- The news;
- what we’re seeing from RENN stock as a result; and
- what we’ll be watching for ahead.
RENN Announces Merger News
As mentioned above, Renren is having a great start to the trading session this morning after merger news broke. The announcement came by way of press release issued by CM Seven Star Acquisition Corporation.
In a press release, CM Seven Star Acquisition announced the results of an annual meeting of shareholders. One of the moves up for a vote had to do with a business combination with RENN. At the meeting, CM Seven Star shareholders were asked to approve a share echange agreement that was announced back in November of last year as well as other related proposals.
In the release, CM Seven Star announced that shareholders have approved the merger with RENN with overwhelming support. In fact, 19,092,862 shares were voted for the transaction while only 50,532 shares voted against.
As a result of the positive vote, it is now expected that the closing of the transaction will take place today, April 30, 2019.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that it’s important to follow the news closely. After all, it’s the news that causes the moves in the market.
In the case of Renren, the news proved to be overwhelmingly positive. After all, the merger has been approved by CM Seven Star shareholders, meaning that the transaction will close, driving immediate value for Renren shareholders.
So, it’s not surprising to see that excited investors are pushing the stock on a run for the top. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:34), RENN is trading at $2.38 per share after a gain of $0.42 per share or 21.43% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on RENN. In particular, we’re interested in following the story surrounding the merger as the transaction should close today. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!