Savvy Trades and Investments

[larrybaz]

GSMG - Sometimes you have to ask yourself: Does this make any sense?

The stock closed at 48 cents yesterday. Here is the PR that was issued this morning:

BEIJING, April 18, 2023 /PRNewswire/ -- Glory Star New Media Group Holdings Limited, ("Glory Star", the "Company" or "we") (NASDAQ: GSMG), a leading digital media platform and content-driven e-commerce company in China, today announced that it has entered into a Share Subscription Agreement with two institutional investors (the "Investors"), for the issuance of 24,193,548 ordinary shares in aggregate, at a purchase price of $2.48 per share. The gross proceeds will be $60,000,000.

The purchase price was determined based off of the privatization price of US $1.55 per share approved by the Company's shareholders on November 11, 2022, with a 60% premium as agreed to by the Company and the Investors. The closing of the private placement is anticipated to occur on or about May 9, 2023.

The $1.55 privatization price they reference was the buyout price of a merger that was recently terminated. The market is saying that this smells like rotten fish. It opened at $1.11 with a high of $1.25. It is currently trading around 72 cents. I wouldn't be surprised if it finishes close to flat on the day.