Just a very, very quick update on my previous post on Fortune Industries (FFI) arbitrage opportunity.
The company announced this strange amendment to their going private transaction.
Basically, what will happen is the company will sell their PEO business to their former major shareholder’s estate in exchange for all of his shares, and use those shares to acquire a set of 20 nursing homes.
Is this strange? I think so. No real financial terms or anything have been disclosed, though the company has said this will allow them to stay public.
Despite the lack of anything tangible, the market apparently loves the move, sending the stock up >100% this week.
The stock is up 100-200% since my article (depending on where you bought). If you were participating in the stock for the arbitrage, this is probably a super small position for you anyway, so given the lack of clarity, why not say thanks for your good fortune, take the profits, and buy yourself a nice bottle of wine tonight?
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