How will the merger affect TURN's liquidity and float?

Liquidity & Float Impact

Because the deal is an all‑stock combination, 180 Degree Capital will issue new TURN shares to Mount Logan’s owners in exchange for their equity. That issuance expands the total share count on TURN’s capital‑stock, directly raising the public float. In practice, the float will swell by the number of Mount Logan shares converted – a dilution of existing TURN shareholders but a net gain in tradable shares that should make the stock more “hand‑off‑friendly” for institutional and retail participants.

The larger float translates into a deeper order book and tighter bid‑ask spreads, especially once the merger close‑date is reached and the conversion process is completed. Expect a modest uptick in daily volume as former Mount Logan investors begin trading TURN, and the market‑maker pool will likely expand to accommodate the higher share supply. In the short term, the conversion window can create temporary volatility (e.g., a spike in short‑selling activity or a brief squeeze as conversion ratios are finalized), but the longer‑term outlook is a more liquid, less thinly‑traded stock.

Trading Take‑aways

• Short‑term: Anticipate a volatility‑driven swing around the merger announcement and the conversion date. Tighten stop‑losses if you’re long, and consider short‑term scalps on any over‑reactions.
  
• Mid‑term: The expanded float should support larger institutional positions and reduce price impact on sizable trades, making TURN a more attractive candidate for algorithmic and passive‑investment inflows.
  
• Long‑term: A higher float and improved liquidity generally lower the premium demanded for illiquid risk, potentially supporting a more stable price trajectory and enabling smoother price discovery.
  

Overall, the merger will boost TURN’s share supply and market depth, easing liquidity constraints and creating a more robust trading environment for both short‑term speculators and long‑term investors.