The stock of American Virtual Cloud Technologies, Inc. (AVCT) gained in the after-hours today after the company announced the securities purchase agreement. The stock valued at $1.33 in the after-hours. This is a gain of more than 9% from the previously closed value. At the end of the last trading session the stock closed at $1.22. The volume of the stock traded in the last trading session was approximately 17.29 million.
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Reason of the stock gain:
On 14th December, 2021 the company announced that the purchase agreement of securities to an institutional investor. $25 million will be the raised amount from the current sale of securities. If we sum all equity raise in the month of November it totals at around $76 million.
Previously the company announced that they are focusing more on the acquisitions as well as they look forward to the development in the growth of the cloud technologies so that they could discover new opportunities for the company IT business. This also include the selling its subsidiary Computex Technology Group (Computex). The company expects that upcoming proceedings from the selling of Computex will help them to pay their debt as well as will enough to carry out the growth plan of 2022.
The company said the new issued shares both common and preferred stock will create a better trading environment as well as the liquidity in the marketplace will also improve with this decision. They expect that the investment will help the company to strengthen its balance sheet as well the agility in the market will improve.
Effect on the stock gain:
After the news hit the market about the flow of new investment in the company, the price of American Virtual Cloud Technologies, Inc. (AVCT) stock surged in the after-hours. Investors were seen to show confidence and were not shying from investing in its stock.
Conclusion:
With this new investment the company expects that it will help them to achieve their growth objectives of next year. They stated that they are looking forward to use these investments to improve their products and services to achieve new revenue goals.
