Since today VCG Holding Corp. (NASDAQ:VCGH) stock starts looking like the mythological city of Troy again.During the last weeks, investors’ attention has been drawn by the discussion whether Troy Lowrie, the chairman and CEO of VCGH, will enter the city of Troy with the Trojan Horse, or the announced last week non-binding proposal for the acquisition of VCGH is just the next attempt of the plunging back stock to survive.
As the company announced, Lowrie Management, LLLP, on behalf of Family Dog, LLC as a purchaser, is willing to acquire the outstanding shares of common stock of VCGH at a cash price of $2.10 per share.
The transaction should be treated as a reverse triangular merger, in which the company will be the surviving entity. As stated in the company’s SEC filing, “The manager of Purchaser will be Lowrie Investment Management, Inc., an entity formed and wholly owned by Troy Lowrie. Following the Merger, the sole officer and director of the Company will be Troy Lowrie.”
Mark Harden from Denver Business Journal also shared with his readers how the company’s CEO is using the ancient strategy of the Trojan Horse.
According to him and following the company’s history of press releases and events, it looks like VCGH really has a practice to periodically announce some acquisition or merger news.
This February, VCGH announced the letter of intent between Rick’s, VCG and VCG’s Chairman and Chief Executive Officer Troy Lowrie, for acquiring all of the outstanding stock of VCG. Then, VCG agreed to merge with and into Rick’s, but unfortunately one month after the release the parties were unable to enter into a definitive merger agreement.
Let us now follow what was VCGH stock performance on the above mentioned events.
This February, at the date of the letter of intent, VCGH shares were worth $2.19. Following the price increase of 21.46%, at the end of March VCGH closed at $2.40. The following month, the price declines again.[BANNER]
These days, as it was earlier this year, VCGH stock was rushed. This time, the volume traded remains huge, but the share price last Tuesday was the modest $1.5834.
Yesterday, VCGH stock closed at $1.97 in almost half a million trading volume.
Who knows, who will be the surviving entity this time. This may be the company as a surviving entity in a merger, or the investors who buy VCGH stock on the PR news.
“… and the Trojans pulled the Horse into their city as a victory trophy …”
