Stargaze Entertainment Group Inc (OTCMKTS:STGZ) Stock Falls 27%: but Why?
One of the companies which had come into focus on Tuesday following a significant new announcement was Stargaze Entertainment Group Inc (OTCMKTS:STGZ). The company announced yesterday that it had signed a letter of intent with regards to a merger with the oil and gas firm Vector Horizontal Resources LLC.
Trading Data
On Tuesday, STGZ stock slumped 26.78% to $0.0175 with more than 7.49 million shares, compared to volume of 816.65K shares. The stock moved within a range of $0.0129 – 0.0266 after opening trade at $0.0240.
Stargaze Entertainment Group, Inc. has signed an LOI to merge with Vector Horizontal Resources, LLC.
The Chairman and Chief Executive Officer of the company Tony Green spoke about the latest development. He noted that the company had been looking for prospective partners for quite some time who could take Stargaze Entertainment to a new level in terms of deliverance of shareholder value. He went on to note that after a long search the company had decided that Vector Horizontal Resources was the ideal company to merge with Stargaze. Green stated that it was a unique opportunity for the shareholders of Stargaze Entertainment.
Jim McCabe of Vector Horizontal also spoke about the proposed merger. He stated that Stargaze Entertainment Group was the ideal vehicle which would allow the company and its team to make a major mark in the oil and gas industry. McCabe also stated that Green was going to step down from his position as the CEO and Chairman of Stargaze following the completion of the transaction.
