What's Going On With Redbox Entertainment Stock Today?

Redbox Entertainment Inc RDBX shares are soaring on above-average volume Thursday amid increased retail investor interest. 

Redbox's average session volume over a 100-day period is about 13.6 million, according to data from Benzinga Pro. Thursday's trading volume has already exceeded 48 million at press time.

Redbox has seen increased interest from retail since the company announced it would be acquired by Chicken Soup For The Soul Entertainment Inc CSSE earlier this month. Redbox shareholders are set to receive a fixed exchange ratio of 0.087 of a share of common stock of Chicken Soup for the Soul per Redbox share.

With Chicken Soup For The Soul shares trading at $6.20 at press time, Redbox shareholders will receive about 54 cents per Redbox share, representing more than a 1,600% premium to the consideration, as highlighted by merger and arbitrage expert Julian Klymochko on Twitter.

"I have seen a lot of crazy things in the capital markets, but this is perhaps the most insane," Klymochko said via tweet. "Especially since $RDBX disclosed potential insolvency."

This isn't the first mention of such. At the beginning of May, Klymochko pointed out that the Redbox filing showed the company could default on its debt if the acquisition failed to close.

Related Link: Redbox Gets Acquired With Bizarre Takeunder Financing: What You Need To Know

Redbox is among the top-trending tickers on Stocktwits at press time. Redbox traders seem to be pointing to a potential short-squeeze opportunity in the name. 38.34% of the float is currently being sold short, according to data from Benzinga Pro.

RDBX Price Action: Redbox has traded between $1.61 and $27.22 over a 52-week period.

The stock was up 37.7% at $9.32 at press time.

Photo: saaby from Flickr.