Prospect Capital (PSEC) Acquires QC Holdings, Here's How the Market Reacted

Prospect Capital Corporation (NASDAQ:PSEC) is one of the Best Penny Asset Management Stocks to Buy Now. On July 1, Prospect Capital Corporation (NASDAQ:PSEC) announced completing the acquisition of QC Holdings, a consumer credit company, for an all-cash transaction valued at $115 million. However, despite this, the stock has fallen 10.48% since the announcement.

Management noted that the acquired company will continue operating from its headquarters in Lenexa, Kansas, and the current management, headed by CEO Darrin Andersen, will stay in charge after the acquisition. Moreover, management also highlighted that shareholders of QC Holdings as of June 30 will receive instructions for submitting their certificates or payments. Shareholders with certificates were expected to get a letter soon, and direct registrants were also expected to receive payments within a few business days of the transaction.

Prospect Capital Corporation (NASDAQ:PSEC) is a business development company that lends to and invests in private companies. It generates income and grows capital by investing in different types of debt and equity.

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Disclosure: None. This article is originally published at Insider Monkey.