Shares of Grindr Inc. (NASDAQ:GRND) are falling Monday after the company ceased engagement related to a take-private proposal.
- GRND is encountering selling pressure. See the full story here.
What To Know: Large shareholders Ray Zage and James Lu proposed acquiring Grindr for $18 per share in cash, but a special committee of the company’s board members made the decision to stop engaging with the shareholders, citing uncertainty regarding the financing of the proposal.
Zage and Lu, who own more than 60% of the outstanding shares of the Company's common stock, sent the proposal to the special committee in late October. The board said it sought information about the certainty of the commitment and amount of financing on recommendation of its independent financial and legal advisors.
"After careful consideration, the Special Committee has unanimously determined that further discussions with the Proposing Shareholders with respect to the Proposal are not in the best interests of the Company or its shareholders at this time," said special committee chair Chad Cohen.
"The Special Committee remains confident in the Company's ability to create significant value for all shareholders as the management team executes its long-term strategic plan, as demonstrated by the Company's outstanding performance in its most recent third quarter financial results."
GRND Price Action: Shares of Grindr are down 8.74%, trading at $12.63 at the time of publication, according to Benzinga Pro.
Read More:
- Grindr Bets On AI Matchmaking, Teases New Pricing Tiers To Increase Average Revenue Per User: On Path To Become An ‘AI-Native Company’
Image: Shutterstock
