Root9B Holdings Inc. (NASDAQ:RTNB)
Shares of Root9B Holdings Inc. (NASDAQ:RTNB) gained 44.2% after the company announced foreclosure auction results. Pursuant to a Security Agreement entered with secured creditors, auction of the company’s assets resulted in $12.5 million – representing the total outstanding principal and unpaid interest owed to secured creditors.
T-12 Halt Code
Root9B Holdings Inc. (NASDAQ:RTNB) no longer has any operating assets following the sell-off – the company no longer has the ability to generate revenues.
The company’s Chief Executive Officer, Eric Hipkins, has since resigned from his position with immediate effect. The NASDAQ capital market has also halted raring of the stock under the T-12 halt code. Trading of the stock will remain halted until the company satisfies regulators request.
The halting of the stock follows the rise of the stock to the $2.01 mark. However, the stock continues to trade in a strong downtrend after losing more than 70% in market value since the start of the year.
Root9B Holdings Inc. (NASDAQ:RTNB) has confirmed that it has agreed to be acquired by an affiliate of Tracker Capital Management.
“Root9B is delighted to announce our new ownership, which provides us the capital required to eliminate debt from our balance sheet and fund our strategic growth initiatives. Our team remains committed to bringing experience, excellent service, and next-generation cyber solutions to our clients,” said Eric Hipkins, Root9B Holdings Inc. (NASDAQ:RTNB) Chief Executive Officer.
Information on the acquisition is still sketchy. However, reports indicate that Root9B will operate as an independent and private company with no affiliation to Root9B Holdings Inc. (NASDAQ:RTNB) which happens to be the parent company.
Root9B Holdings Inc. (NASDAQ:RTNB) would face an uncertain future in the stock market should the NASDAQ allow it to continue operating as a public company. The fact that the company does not have revenue generating avenues following the sale of key assets is another point of concern that could affect investors’ confidence on the stock.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.