Shares of Root9B Holdings Inc (NASDAQ: RTNB) were halted by the Nasdaq exchange Friday morning under a "T-12" halt code.
A T-12 halt code is used by stock exchange regulators when they require information from the company. Trading will remain halted indefinitely until the company satisfies regulators' requests.
Root9B is a provider of advanced cybersecurity products, services and training. The company said Thursday that it has agreed to be acquired by an affiliate of Tracker Capital Management, which is an early stage investor that focuses on emerging technologies and companies that could become a major player in advancing U.S. national security interests.
Here's where the news becomes slightly confusing, which may explain the Nasdaq's request for additional information. Root9B will operate as an independent and privately owned company that will have no affiliation with Root9B Holdings, which appears to be a parent company that operates through three segments: Cyber Solutions, IPSA International, Inc. (IPSA)/Business Advisory Solutions and Energy and Controls Solutions, according to a press release.
Root9B Holdings' website curiously has no mention of Thursday's acquisition announcement.
Investors may recall a similar scenario in which DryShips Inc. (NASDAQ: DRYS)'s stock was temporary suspended on a T-12 halt code after shares skyrocketed from $5 per share to north of $100 in a few days with no notable underlying news.
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