BT Brands Stock Slides 35% After Hours: Why Is It Moving?

BT Brands Inc (NASDAQ: BTBD) fell more than 34% to around $1.15 in after-hours trading on Thursday after the company disclosed the termination of its planned merger agreement with Aero Velocity Inc.

BT Brands operates restaurant businesses, including the Burger Time chain, which serves burgers and other fast-food offerings across parts of the Midwest.

Merger Termination

The company said it terminated its Agreement and Plan of Merger with Aero Velocity, a provider of drone and aerial support services, on May 1 after the transaction failed to close before the contractual deadline.

According to the filing, the related registration statement had not been declared effective by the Securities and Exchange Commission before the April 30 extended deadline, leading BT Brands to exercise its termination rights under the agreement.

BT Brands added that it does not believe any termination fee or material penalty is payable in connection with ending the agreement

Dispute Update

The company also disclosed that Aero Velocity's counsel sent a letter on May 4 asserting that the termination was invalid and that BT Brands lacked the right to terminate the merger agreement.

BT Brands said it disagrees with Aero Velocity's claims regarding the merger termination.

Trading Metrics

BT Brands currently has a market capitalization of roughly $10.8 million. The stock has traded between $1.00 and $5.59 over the past 52 weeks.

Price Action: Shares closed Thursday's regular trading session at $1.76 before falling to approximately $1.15 in after-hours trading.

Benzinga's Edge Stock Rankings indicate that BTBD stock has a positive price trend across short-, medium- and long-term time frames.

Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.

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