Greenidge Generation Holdings (GREE) ends its first day of trading 22% lower than the opening price. Greenidge Generation, formerly Support.com (SPRT) opened on Wednesday with a strike price of $57.
On Monday this week, the company provided an update regarding their previously announced merger will be complete on end of Tuesday.
At Tuesday’s close, the transaction that combined the two companies concluded with a reverse stock split of approximately one new share of Greenidge (GREE) for every 8.5 shares of Support.com. The official exchange rate was 0.115 shares of new stock for each existing share of Support.com at the closing price of $11.80 per share. That would have valued a new Greenidge share at around $87. It is still unclear on how/why the company’s opening price was only $57.
Retail traders have been expressing their anger social media platforms on the way this merger was rushed. Lot of brokers haven’t listed GREE on their platform yet; fuelling further anger among the investors who are holding Support.com shares.
It’s also been speculated that, there were plenty of online misinformation ahead of today’s GREE opening, with lots of posts indicating that a squeeze was inevitable as all shorts would be forced to cover their positions.