American Virtual Cloud Technologies Stock Price Increased Over 30% Pre-Market: Why It Happened

By Amit Chowdhry ● April 8, 2021
  • The stock price of American Virtual Cloud Technologies Inc (NASDAQ: AVCT) increased by over 30% pre-market. This is why it happened.

The stock price of American Virtual Cloud Technologies Inc (NASDAQ: AVCT) increased by over 30% pre-market. Investors appear to be responding to the company announcing that it received an unsolicited offer to buy the company for around $9 per share yesterday afternoon.

As a result, the American Virtual Cloud Technologies’ Board of Directors has determined to commence a process to explore, review and evaluate a range of potential strategic alternatives available to the company, including the unsolicited acquisition proposal, and intends to retain a financial advisor shortly to assist in this process.

The company’s Board of Directors has not set a timetable for this process nor has it made any decisions related to strategic alternatives, including the unsolicited proposal, at this time. And no assurance can be given that the company’s exploration of strategic alternatives, including the unsolicited proposal, will result in any change in strategy, any discussions regarding a transaction or a transaction being entered into or consummated, or if a transaction is undertaken, as to its terms, structure or timing.

The company does not expect to make a further public comment regarding these matters unless and until the Board has approved a specific transaction or alternative or otherwise concludes its review of strategic alternatives.

Greenberg Traurig, LLP is acting as legal advisor to the company.

KEY QUOTE:

“Our Board of Directors is committed to enhancing value for all of our stakeholders, and this review is an important and timely next step in the growth and evolution of the company.”

— Darrell J. Mays, Chairman of the Board of Directors

“While we conduct this review, we will remain focused on executing our business plan and continuing to deliver value for our customers.”

— Xavier Williams, Chief Executive Officer of American Virtual Cloud Technologies

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.