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Stock impact report

The Real Brokerage (REAX) Stock Trades Down, Here Is Why [Yahoo! Finance]

The Real Brokerage, Inc. - Common Shares (REAX) 
Company Research Source: Yahoo! Finance
announced it would acquire RE/MAX Holdings in a deal valued at approximately $880 million, raising investor concerns about the cost and shareholder dilution. The transaction will create a new holding company, Real REMAX Group, which will continue to trade under the ticker REAX. Under the terms of the all-stock and cash deal, existing shareholders of The Real Brokerage are expected to own about 59% of the newly combined company. To facilitate the acquisition, Real secured a $550 million financing commitment to refinance RE/MAX's existing debt and cover transaction costs. The significant drop in the stock price indicates that investors may be worried about the large amount of debt being taken on and the potential dilution of their ownership stakes from the issuance of new shares to complete the merger. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy The Real Brokerage? Access our full analys Show less Read more
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