Tix Corp.’s stock dropped nearly 10 percent Monday after the company disclosed that MGM Resorts International would not acquire the company.
The Studio City-based seller of discount tickets for attractions in Las Vegas issued an update for shareholders on July 19 saying it was engaged in dialogue with MGM about a potential sale.
Later, Haren Bhakta, who runs Capital Partners LP in Santa Ana which has a significant stake in Tix, claimed he had triggered the “poison pill” provision under the company’s shareholder rights plan in the event of a takeover. Tix later denied the claim, saying Bhakta had no comprehension how a shareholder rights plan works.
On Monday, Tix said that “MGM Resorts has informed the company that it determined to not pursue a transaction. … While the company’s management and board of directors remain focused on efficiently running the business, the company will continue to explore all potential opportunities to enhance shareholder value.”
Shares of Tix (TIXC) closed Monday down 3 cents, or 9.9 percent, to 30 cents on the over-the-counter market.