Marin Software (MRIN) Stock Soars On Potential Asset Sale, Reorganization: What's Going On?

Marin Software Inc MRIN shares are trading sharply higher during Tuesday’s session following the announcement of a non-binding Letter of Intent with a private equity firm for a potential asset sale. Here’s what investors need to know.

What To Know: The proposed transaction, which could involve a voluntary reorganization, is seen by Marin Software’s board as potentially offering greater liquidating distributions to stockholders compared to the company’s previously contemplated voluntary dissolution.

To facilitate the pursuit of this potential deal, Marin Software issued a $300,000 secured promissory note to an affiliate of the private equity firm.

Despite the positive development, the company emphasizes that there are no guarantees the transaction will be finalized. As a result, Marin Software still plans to proceed with a special shareholder meeting on June 11, to seek approval for the dissolution plan, providing a fallback option should the asset sale not materialize.

Price Action: The company, a micro-cap digital advertising management firm with a market capitalization currently around $2.7 million, saw its stock price jump dramatically in early trading, reaching $1.28, a gain of over 50% from its previous close of 85 cents.

The trading volume for the session has been robust, with 19.435 million shares changing hands, significantly higher than its 100-day average volume of 1.805 million, reflecting strong investor interest.

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How To Buy MRIN Stock

By now you're likely curious about how to participate in the market for Marin Software – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of Marin Software, which is trading at $1.44 as of publishing time, $100 would buy you 169.44 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, MRIN has a 52-week high of $3.39 and a 52-week low of $0.41.

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