Last week saw the culmination of an important decision that posed significant consequences for two companies as shareholders voted to approve the merger between Support.com (NASDAQ:SPRT) and Greenidge Generation Holdings. The vote resulted in a unanimous decision for the deal to move forward. Today, investors who hold SPRT stock finally received the announcement they had been waiting for regarding the final stages of the merger.
As of Sept. 14, the merger should be official. Then, Greenidge will make its debut on the Nasdaq under the ticker GREE.
What Happened With SPRT Stock?
SPRT stock has had a turbulent year, to say the least. Over the last 12 months it has risen considerably, up more than 860%. Shares really began to rise in March when talk of the deal first began, and peaked in late August when it became clear that the merger was becoming more and more likely to go through. This deal saw a struggling digital help-desk company combine with an industry innovator with holdings in two rapidly growing areas of tech — renewable energy and blockchain development.
Since the shareholder vote took place, though, shares have dropped from the initial spike that we saw earlier in the month. As of this writing, they are down 9.24% on the day.
Even with this type of turbulence, there is little cause for investors to be concerned about the fate of SPRT stock as the companies move to the final stages of the deal.
Why It Matters
I’ve maintained throughout the month that this deal will ultimately prove beneficial for both companies, and that it makes considerable sense for Support.com.
The current downturn in shares doesn’t change that. The final stages of a merger or acquisition that holds the power to shift prices considerably can easily generate this type of uncertainty.
For those who are still opting for a bullish perspective on SPRT stock, though, the industry landscape still looks good. And even better is the fact that this deal, months in the making, is about to conclude, allowing the new company to move forward and start regaining the the market momentum that it had last week.
SPRT Stock: What’s Next?
Assuming no regulatory obstacles arise, all systems should be go on this merger as of tomorrow.
One interesting aspect to the saga that has unfolded is that it has helped Support.com garner almost meme stock status among investing communities, leading to some helpful media buzz. It’s been touted by Twitter personality Will Meade as a potential short squeeze play, the type of hype that really attracts retail investors.
Meade also thinks that the possibility is there for SPRT stock to go as high as $50 per share and as of now, that’s not beyond the realm of possibility, particularly if this type of hype continues. Greenidge is exactly the type of company that Support.com needed to merge with.
Be on the lookout. Before long SPRT stock will be a thing of the past, and GREE stock will be trading.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.