Why Is Strong Global Entertainment (SGE) Stock Up 58% Today?

Strong Global Entertainment (NYSEMKT:SGE) stock is on the rise Monday after the projection screens manufacturing company announced an acquisition deal with FG Acquisition.

This has special purpose acquisition company (SPAC) FG Acquisition agreeing to acquire Strong Global Entertainment’s Strong/MDI Screen Systems. Following this acquisition, FG Acquisition will change its name to Saltire Holdings, Ltd.

FG Acquisition intends to rebrand to Saltire and switch focus to become an equity investment company. This will also see it enter into a management agreement with Saltire Partners, Inc.

Strong Global Entertainment CEO Mark Roberson, said the following about the deal.

“MDI is a global leader in cinema and entertainment, and being part of Saltire will provide greater access to the Canadian financial markets as the management team executes on its growth plans. For Strong Global, this represents an opportunity to unlock the value of our investment in MDI and we look forward to participating in the future growth and success of Saltire.”

How This Affects SGE Stock

Shares of SGE stock are seeing heavy trading on Monday alongside the acquisition deal. That has more than 2.6 million units changing hands as of this writing. That’s well above Strong Global Entertainment’s daily average trading volume of only about 7,800 shares.

SGE stock is up 57.9% as of Monday morning.

There are more stock market stories worth reading about below!

We have all of the hottest stock market news for Monday! That includes the biggest pre-market stock movers this morning, the latest news for Beneficient (NASDAQ:BENF) investors and more. All of that news is available at the following links!

More Monday Stock Market News

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.