Nicholas Financial Merger Possibly Back On

We took Nicholas Financial ($NICK) off this year’s Buy List, and I’m glad we did. NICK and Prospect Capital ($PSEC) have been trying to close out their merger deal and it hasn’t gone well.

The SEC told PSEC that they had to restate their past earnings, and that hurt both stocks. Now, however, the SEC has apparently reversed that decision (although they’ll need to restate future earnings). Both NICK and PSEC rallied yesterday.

NICK said it would give PSEC until June 12th, which is today, to close the deal. After that, it would make a call about their relationship and that could include walking away from the deal. I assume that now the deal is back on.

Posted by on June 12th, 2014 at 10:15 am


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