Can someone tell me if I'm missing something here?
The merger between SPAR Group, Inc. (SGRP) and Highwire Capital is structured as an acquisition, where Highwire Capital will acquire SPAR Group for $2.50 per share in cash. This means that SPAR shareholders will receive $2.50 in cash per share they hold, and there will be no issuance of new shares.
Since this is a cash transaction, existing SPAR shareholders will no longer hold SPAR stock after the merger is completed. They will receive the cash payout.
Highwire capital recently confirmed their intent to follow through with the acquisition. https:// finance.yahoo.com/news/highwire-confirms-plan-acquisition-spar-140000581.html?
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Currently holding at $1.38. If the deal goes through, it's a free 81%.
Is this too good to be true?