BlueCity Shares Soar On Going-Private Transaction

Online LGBTQ platform BlueCity Holdings Limited BLCT has entered into a merger agreement to be acquired by a buyer group in an all-cash transaction, implying an equity value of $60 million for all shares.
The proposed purchase price is $3.20 per ordinary share or $1.60 per ADS in cash.
Also Read: Why BlueCity Holdings Stock Is Trading Higher Today
The per ADS merger consideration represents a premium of 16.8% to the closing price on April 14, the last trading day before BlueCity announced its receipt of the revised "going-private" proposal.
The buyer group comprising Baoli Ma, Metaclass Management ELP, and the CDH Entities look to fund the merger with rollover equity and cash.
The merger is currently expected to close in the second half of 2022.
Price Action: BLCT shares traded higher by 14.3% at $1.44 in the premarket on the last check Monday.