Shares in NYSE Amex listed Dreams Inc. (DRJ) is a dream come true for those investing in the penny stock which is up 30.46% so far today. News was announced of an acquisition for all of the DRJ stock at $3.45 in a friendly merger agreement. The stock of Dreams Inc. has traded over 5 million shares thus far, more than 100X its 5 day average of 59,572.
DRJ, a technology-driven, multi-channel retailer that is focused on the licensed sports products industry, signed a definitive merger agreement with Fanatics Inc. prior to the open of the market today. Fanatics Inc., a leading online seller of licensed sports products.
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DRJ Stock Snap Shot:
Market Cap (intraday): 151.85M
(Mar 26, 2012): 3.04
(Aug 8, 2011): 1.66
Avg Vol (3 month): 60,884
Avg Vol (10 day): 45,957
Shares Outstanding: 44.66M
% Held by Insiders: 46.20%
The agreement between Dreams and Fanatics calls for Fanatics to acquire all the outstanding shares of Dreams Inc for $3.45 per share in cash, approximately $183 million, taking into account $25 million of outstanding debt. The Board of Directors of DRJ unanimously approved the transaction which is expected to close in the third quarter of 2012.
Dr. Phillip Frost, a major investor in Pershing Gold (OTC: PGLC) (see here) and Dreams’ third largest shareholder, Chairman of Teva Pharmaceuticals (NYSE: TEVA) and Chairman and CEO of Opko (NYSE: OPKO), said that Dreams’ CEO Ross and his executive team built a terrific company and ultimately were able to deliver meaningful value to all of DRJ shareholders.
To view the SEC filings for DRJ, click here.
Bottom Line: With the connection Dr. Philip Frost has had with profitable penny stock investments, one has to wonder whether or not PGLC will be the nest hot penny stock to charge. Dreams Inc is a great company and had been so stagnant and had had such low volume that it flew under our radar.
We congratulate Dr. Philip Frost and all the DRJ shareholders in what is a great day to celebrate a good day in the market booking profits on one of today’s hot penny stocks.Share