Yes, it is weird. And the fact that its tanking so hard is a prime example of the market revealing its beliefs about the likely prospects of the merged entity. The company buying CPH has absolutely no market traction anywhere in the world and lost $24 million just last year. Now, they're seeking to acquire another company (CPH) with annual losses of $17 million.
This means that, if the current performance continues, the new company will lose ~$40 million next year absent a miracle of biblical proportions.
Why would anybody, including current CPH shareholders, want anything to do with that (let alone all the additional time and hassle of selling PCLO shares on a different exchange in future if they don't sell out now).
Don't also forget the pending release of shares from escrow, which will only add selling pressure soon. The market knows of this and is seeking to avoid this additional "complication."
Quite frankly it's not looking too flash IMHO.
CPH Price at posting:
48.5¢ Sentiment: Sell Disclosure: Not Held
