Lazydays Stock Soars on Campers Inn Acquisition Deal
Shares surge over 47% in combined trading, though the RV retailer warns the deal's value may not cover all debts, posing a risk to stockholders.
Shares of Lazydays Holdings Inc. (NASDAQ: GORV) skyrocketed in a dramatic trading session, fueled by news that the recreational vehicle dealership is set to be acquired by rival Campers Inn RV. The stock jumped +24.90% during regular trading hours and continued its climb with a +22.79% surge in after-hours activity, capping a remarkable rally driven by speculative interest in the buyout.
The catalyst for the explosive move was the announcement of a letter of intent for and its subsidiary locations. The deal would significantly expand Campers Inn's footprint to 48 locations across 22 states, marking its first entry into Tennessee, Colorado, and Utah markets. For Lazydays, the transaction marks a pivotal moment for a company navigating a challenging market.
Despite the bullish investor reaction, Lazydays issued a significant warning to its shareholders. The company cautioned that there are , a scenario that could potentially leave stockholders with no financial recovery from the deal. This disclosure reframes the stock's surge as a highly speculative play on whether any residual value will remain for equity holders after liabilities are settled.
The recent gains stand in stark contrast to the stock's performance over the past year. Even with this rally, GORV's stock , having plummeted from a 52-week high of over $58. The company's market capitalization now stands at approximately $11.43 million, highlighting the immense value destruction that preceded the acquisition news.
According to the letter of intent, both parties are aiming to complete the complex transaction before Thanksgiving, with a final deadline of December 1. Given the nature of the dealership network, the deal may involve closing on a site-by-site basis. Investors will be closely watching whether the final terms of the acquisition will provide any value to shareholders or primarily serve to satisfy the company's creditors.