Yesterday, Law Offices of Howard G. Smith announced that it was investigating potential claims against the 
board of directors of Phoenix Technologies Ltd. (NASDAQ:PTEC). The investigation appears to be related to the agreement with the Marlin company, and the proposed cash totals approximately $139 million.
According to the press release, Marlin will acquire all outstanding shares of Phoenix common stock for $3.85 per share and the board of directors of Phoenix has already approved the cash transaction.
Looks like after reporting the news, the investors got interested in PTEC and the stock soared over 25% on its price. Along with the price jump, its traded volume exceeded the unusual 20 million shares. That’s a phenomenal value for Phoenix and it immediately placed it among the largest volume increases on NASDAQ.
But what’s going to happen after the big climb?
The latest financial results of PTEC show that its net income and gross profit are a bit lower as compared to the previous period and the company still has a net loss to cover. The good news for Phoenix is that it has more assets than liabilities on its balance sheet and no long-term debt.
Presently, the company is hopeful about its new agreement with Marlin and relies mainly on its financial resources. However, no one knows what’s to follow after the investigation of the Board is closed.
