Terra Nova Financial Group Inc. (OTC:TNFG) stock resumed trading under the symbol TNFG. The stock trading had been halted for a couple of days after the company was acquired by Lightspeed Financial, Inc.Terra Nova was sold for a total of $27.6 million, or around $1.10 per share, including the $5 million promissory note. The acquisition was approved by the shareholders in a meeting that took place on September 15, 2010. The acquisition of Terra Nova expanded Lightspeed’s client base to more than 7.5 thousand.
The sale of the business came at the time when Terra Novas financial situation began to deteriorate. Year over year, sales were down nearly 37% in the quarter ending June 30, 2010. Net loss escalated nearly 4-fold, but it hurt the share price more than the company itself, as cash flow remained positive in 2010.[BANNER]
The firm will continue its operations sheltered by Lightspeed and will take advantage of the opportunities arising from the larger user database, better trading system and sophisticated management. The company will also change their name to TNFG Corporation, which was also approved at the shareholders meeting.
After the acquisition plans were confirmed, the stock price had barely fluctuated around the $0.90 level, which computes to the buyout offer without the inclusion of $5 million promissory note.
