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Nicholas Financial tumbles as it pulls out of Prospect deal

  • With certain conditions required to consummate the sale of the company to Prospect Capital (PSEC +0.7%) not met ahead of the June 12 termination deadline, Nicholas Financial (NICK -6%) pulls the plug on the deal.
  • Prosepct had previously said it didn't expect to close on the transaction as a result of the SEC investigation into its accounting methods, but had hoped to amend its agreement with Nicholas.
  • Source: Press Release
  • Previously: Prospect wins appeal with SEC; no restatement necessary
Comments (8)
  • zack54
    , contributor
    Comments (109) | Send Message
     
    I'm not so sure this isn't a good thing for both parties.
    12 Jun, 03:08 PM Reply Like
  • TEX1961
    , contributor
    Comments (40) | Send Message
     
    Now that the SEC issue is resolved PSEC and NICK can reset and the deal will probably will be done at a later date.
    12 Jun, 03:11 PM Reply Like
  • arthur_bishop1972
    , contributor
    Comments (2142) | Send Message
     
    Maybe Lawrence will stop writing about PSEC now.
    12 Jun, 03:34 PM Reply Like
  • RickyC
    , contributor
    Comments (47) | Send Message
     
    It is my understanding that NICK has not filed some required reports with the SEC regarding their financial statements.
    In looking at the last 2 or 3 10-q's/, they had some scary numbers on delinquencies increasing.
    As a PSEC stockholder, I was concerned about the NICK acquisition being the right choice.
    Let's hope that PSEC does not pursue NICK.
    12 Jun, 04:37 PM Reply Like
  • Ian Cognito
    , contributor
    Comments (7) | Send Message
     
    ....or negotiates a significantly better price for the business. Either way, PSEC will be in a better position.

     

    NICK's price was down 5%+ today. The class action lawyers must be so excited.
    12 Jun, 05:11 PM Reply Like
  • foretherecord
    , contributor
    Comments (13) | Send Message
     
    Why not amend the deal though? I don't think it is too much of an impact for PSEC considering their size relative to NICK.
    12 Jun, 06:52 PM Reply Like
  • koolsool
    , contributor
    Comments (290) | Send Message
     
    The angry NICK shareholders who thought PSEC paid too little for their company got their wish. But their shares are worth much less today without PSEC.
    13 Jun, 08:50 AM Reply Like
  • critterlitter
    , contributor
    Comments (367) | Send Message
     
    Sometimes, the best deals are the deals that aren't made. IF Prospect has done due diligence and really feels it's a deal worth making, then there will be further talks to put all the ducks in a row to make the deal happen. I think there's less than a 50/50 chance of this happening. No big deal (no little deal either) ...
    16 Jun, 09:42 AM Reply Like
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