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Glory Star New Media (NASDAQ:GSMG) inventory is on the rise Tuesday after the Chinese language digital media firm introduced a $60 million strategic funding.
In accordance with a press launch, the corporate is promoting 24,193,548 shares of GSMG inventory to 2 institutional traders. These shares are being bought for $2.48, which brings the gross proceeds of $60 million the corporate is anticipating.
Glory Star New Media notes that the acquisition value relies on the privatization value of $1.55 authorized by shareholders again in November. It additionally features a 60% premium that was agreed on by the corporate and the institutional traders shopping for the shares.
Whereas the corporate has introduced the main points of the non-public placement, it isn’t taking place simply but. The corporate expects the non-public placement to be accomplished on or about Could 9, 2023.
How This Impacts GSMG Inventory
Buyers are reacting properly to information of the non-public placement in the present day. That’s resulted in additional than 11 million shares of the corporate’s inventory altering arms as of this writing. To place that in perspective, the corporate’s every day common buying and selling quantity is nearer to 145,000 shares.
To be clear, GSMG is a penny inventory. That comes from its low buying and selling value of 48 cents when markets closed yesterday, in addition to its market capitalization of $32.7 million. Meaning it’s prone to volatility. It wouldn’t be stunning to see it surrender a few of in the present day’s features all through the week because it comes off this rally.
GSMG inventory is up 152.08% throughout pre-market buying and selling on Tuesday!
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Extra Tuesday Inventory Market Information
On the date of publication, William White didn’t have (both immediately or not directly) any positions within the securities talked about on this article. The opinions expressed on this article are these of the author, topic to the InvestorPlace.com Publishing Pointers.
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