Model N Inc (MODN) has disclosed a new risk, in the Corporate Activity and Growth category.
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Model N Inc faces a significant business risk due to the impending merger. Upon completion, each common stock share will transform into a $30 cash entitlement, devoid of interest and subject to tax deductions, leaving stockholders with no equity in the parent company. Consequently, should Model N Inc thrive post-merger, former stockholders will be excluded from potential financial gains, forfeiting benefits from any future business successes. This exclusion from post-merger growth could dissuade current investors and impact the stock’s appeal prior to the merger’s finalization.
The average MODN stock price target is $30.00, implying 0.81% upside potential.
To learn more about Model N Inc’s risk factors, click here.