- Marin Software enters into a non-binding letter of intent with a private equity firm to explore a potential transaction.
- The company's board believes the potential transaction would result in greater liquidating distributions for shareholders.
- A new wave of value and momentum stocks could be setting up for major moves—and Tim Melvin will name them live this Wednesday. Secure access here.
Shares of micro-cap digital advertising management company Marin Software Inc MRIN are soaring in Monday’s after-hours session after the company announced a letter of intent (LOI) with a private equity firm for a potential asset sale.
What Happened: After the market close on Monday, Marin Software said in a filing that it entered into a non-binding LOI with a private equity firm to explore a potential transaction to sell substantially all of the company’s assets, potentially through a voluntary reorganization transaction.
The company’s board believes the potential transaction would result in greater liquidating distributions for shareholders than the currently contemplated voluntary dissolution.
On June 6, the company issued a demand secured promissory note to an affiliate of the private equity firm, resulting in the company receiving gross proceeds of $300,000 for expenses related to pursuing the potential transaction.
Given that there are no assurances related to the potential transaction, the company still plans to seek dissolution approval from shareholders at a special meeting set for Wednesday. Obtaining shareholder approval for the dissolution will allow the company to promptly move forward if it cannot enter into the potential transaction with the private equity firm.
Marin Software had a market cap of just $2.54 million as of Friday’s close, with a total float of just 2.9 million shares, according to Benzinga Pro. Low-float micro-cap stocks tend to be extremely volatile.
MRIN Price Action: Marin Software shares were up 167.06% in after-hours Monday, trading at $2.27 at the time of publication, per Benzinga Pro.
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