Mktg, Inc. (OTCQB: CMKG) saw its share volume soar on May 28th with 540,981 shares exchanging hands, 47 times higher than its three month daily average volume of 11,482 shares.
This uptick in volume comes after the company announced yesterday that Aegis Lifestyle, Inc., a newly-formed subsidiary of Dentsu Aegis Network, had entered into a definitive agreement under which Aegis Lifestyle will acquire all outstanding shares of MKTG INC common stock for $2.80 per share in cash in a transaction valued at $52 million. As part of the transaction, all holders of Series D Preferred Stock will convert their shares to common stock prior to the merger and be paid the merger consideration as holders of common stock.
The transaction price represents a premium of 166% over MKTG's closing price of $1.05 as of May 23, 2014, the last trading date prior to the date of this announcement. The terms of the agreement were approved by the boards of directors of both MKTG, Aegis Lifestyle, and Aegis Lifestyle's parent companies Aegis Media Americas, Inc. and Dentsu Aegis Network Ltd. The transaction is expected to be financed by cash on hand at Aegis Media Americas, which has guaranteed the payment obligations of Aegis Lifestyle under the definitive agreement.
"This all-cash, premium transaction provides significant and immediate value to our stockholders," said Charlie Horsey, MKTG's Chairman and Chief Executive Officer. Mr. Horsey added: "This is an exciting opportunity for us to join one of the world's leading communications networks. Dentsu Aegis Network's emphasis on innovating the way brands are built is a perfect complement to our mission to build communities around brands through innovation in experiential marketing. We believe there are strong synergies between our approaches and experience, and together, we can continue to grow our offering in direct to consumer marketing, which is becoming a critical component of most industry leading brands and marketing campaigns."
Today, Rigrodsky & Long, P.A. announced that it is investigating potential legal claims against the board of directors of Mktg, Inc. regarding possible breaches of fiduciary duties and other violations of law related to the Company’s entry into an agreement to be acquired by Aegis Lifestyle, Inc., a subsidiary of Dentsu Aegis Network, in a transaction valued at approximately $52 million.
Under the terms of the agreement, public shareholders of MKTG would receive $2.80 per share in cash for each share of MKTG they own.
The investigation concerns whether MKTG's board of directors failed to adequately shop the Company and obtain the best possible value for MKTG's shareholders before entering into an agreement with Dentsu Aegis.
Clearly, this investigation, along with similar allegations and an impending investigation from Pomerantz LLP, could have immediate effects on the company's share price and share volume, both of which have skyrocketed since the news of the company's buyout was released.
CMKG close the day at $2.69, up 156.19% from its previous close of $1.70. But bear in mind, CMKG opened the day at $2.70 even though it closed a dollar less the previous day.
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