Yesterday Chanticleer Holdings ($BURG) skyrocketed on news of a merger with Sonnet Biopharmaceutical. The restaurant business will spin off into an independent company called Amergent Hospitality Group.
The stock gained +152.50% from open of $0.62 cents to $1.01. The stock decreased 21% closing at $0.79 cents per share and is now down 28%.
Chanticleer Holdings ($BURG) Analysis
A look at its technical shows that BURG’s 50-day SMA is 37.74 while its 200-day SMA stands at 13.72. The stock has a high of $2.95 for the year while the low is $0.30. The company’s average trading volume currently stands at 524.55K shares. Over the past seven days, the company moved, with its shift of 12.52%.
Chanticleer Holding’s ($BURG): What To Look For
The merger and corporate update is expected to close on Monday March 30, 2020 and shareholders who held shares yesterday will receive shares in both of the new companies.
Amergent Hitting the Ground Running
In anticipation of the opportunity the merger and spin-off afford our restaurant business, management has been busy preparing for day one as Amergent and has already made significant progress. Specifically, we have sharpened our overall strategic plan which is built around three principles that govern how we run our restaurants and our overall corporate enterprise:
- Becoming the local market’s employer of choice
- Becoming the local market’s destination of choice
- Becoming our comp sector’s investment of choice
Mr. Glick, who will continue to lead the restaurant business as President of Amergent, stated, “We cannot wait to close the merger and spin-off and turn our focus solely to executing our strategic plan for Amergent. We are excited about the future.”
