Are there any disclosed details on the use of proceeds from the merger or any potential asset sales? | SOAR (Aug 14, 2025) | Candlesense

Are there any disclosed details on the use of proceeds from the merger or any potential asset sales?

Answer to the specific question:

In the Volato Q2‑2025 press release there is no explicit disclosure about how the proceeds from the planned merger with M2i Global, Inc. will be allocated, nor any mention of planned asset sales to fund the transaction. The filing focuses on earnings, rapid debt reduction, and the upcoming “transformational merger” without outlining a capital‑allocation roadmap.

Trading implications:

* Fundamentals: The lack of clarity on the use‑of‑proceeds creates an information gap that can heighten volatility around the merger announcement and any subsequent SEC filings (Form 8‑K, S‑4). Until the company spells out whether proceeds will be directed to debt repayment, growth‑capital (e.g., acquisitions, technology investments), or a combination, the market will price in uncertainty. Traders should watch for a forthcoming “use of proceeds” disclosure in the upcoming merger proxy or registration statement, as it may materially affect the equity valuation and the credit profile of both entities.

* Technical: SOAR has been trading in a strong up‑trend (price above 50‑ and 200‑day moving averages) with momentum still intact (RSI ~ 65). If the market perceives the merger as “cash‑rich” (e.g., proceeds earmarked for debt reduction), the bullish bias may hold; however, any hint of “asset sales” could trigger a short‑term sell‑off as investors fear dilution or asset‑strip‑type financing.

* Actionable insight: Maintain a long‑only stance only if you are comfortable with the current upside and the company’s robust cash flow. Consider tightening stop‑losses near the recent swing‑low (~$2.70) and look for a breakout above the recent high (~$3.20) as a trigger for adding to the position. Simultaneously, keep a small hedge (e.g., 1‑2% of position) in a short‑term put or protective collar in case the merger‑related details turn negative (e.g., large asset divestiture or debt‑paydown without growth spend). Monitoring the forthcoming proxy filing (expected within the next 30 days) will be critical for refining the trade.