Why Great Ajax Corp. Stock Plummeted Today

Great Ajax Corp. AJX shares are trading lower after the company and Ellington Financial announced the mutual termination of their merger agreement.

What To Know: The mutual termination was announced after the close of the market last Friday and was made effective immediately. Additionally, Ellington Financial agreed to pay Great Ajax $16 million of which $5 million is payable in cash. $11 million was paid as consideration for approximately 1.666 million shares of Great Ajax common stock, purchased at a per share price of $6.60, bringing Ellington Financial's stake in the Great Ajax Corp. to 6.1% of the company's stock.

Also, as of June 30, an affiliate of the external manager of Ellington Financial owned 273,983 shares of Great Ajax common stock. Ellington Financial remains a securitization joint venture partner and the two companies plan to continue to collaborate on mortgage loan opportunities.

Shares of Great Ajax Corp. dropped on unusually high trading volume on Monday in response to the news. According to data from Benzinga Pro, the stock experienced above-average trading volume of 1.23 million shares compared to its average volume of 144,334.

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AJX Price Action: Shares of AJX were down 31.0% at $4.40 at the time of publication, according to Benzinga Pro.

Image by Gerd Altmann from Pixabay