Why Is Strong Global Entertainment (SGE) Stock Up 58% Today?


  • Strong Global Entertainment (SGE) stock is rallying on an acquisition deal.
  • It’s selling subsidiary Strong/MDI Screen Systems to FG Acquisition.
  • That brings with it heavy trading of SGE shares on Monday morning.
SGE Stock - Why Is Strong Global Entertainment (SGE) Stock Up 58% Today?

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Strong Global Entertainment (NYSEMKT:SGE) stock is on the rise Monday after the projection screens manufacturing company announced an acquisition deal with FG Acquisition.

This has the special purpose acquisition company (SPAC) FG Acquisition agreeing to acquire Strong Global Entertainment’s Strong/MDI Screen Systems. Following this acquisition, FG Acquisition will change its name to Saltire Holdings, Ltd.

FG Acquisition intends to rebrand to Saltire and switch focus to become an equity investment company. This will also see it enter into a management agreement with Saltire Partners, Inc.

Strong Global Entertainment CEO Mark Roberson said the following about the deal:

“MDI is a global leader in cinema and entertainment, and being part of Saltire will provide greater access to the Canadian financial markets as the management team executes on its growth plans. For Strong Global, this represents an opportunity to unlock the value of our investment in MDI and we look forward to participating in the future growth and success of Saltire.”

How This Affects SGE Stock

Shares of SGE stock are seeing heavy trading on Monday alongside the acquisition deal. That has more than 2.6 million units changing hands as of this writing. That’s well above Strong Global Entertainment’s daily average trading volume of only about 7,800 shares.

SGE stock is up 57.9% as of Monday morning.

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On the date of publication, William White 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.

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