Seven Stars Cloud Group Inc (NASDAQ: SSC) is having an amazing start to the trading session this morning after the company announced that it has entered into a $6 billion deal. The deal was signed with a leading auto financing company in China, exciting investors and sending the stock screaming for the top. Today, we’ll talk about:
- The $6 billion deal;
- what we’re seeing from SSC stock as a result; and
- what we’ll be watching for ahead.
SSC Secures $6 Billion Deal
As mentioned above, Seven Stars Cloud Group is having an incredible start to the trading session this morning after the company announced that it has entered into a large deal. In a press release issued early this morning, the company announced that it has entered into a $6 billion, 3-year term agreement with First Auto Loan, China’s leading auto finance company. In the release, SSC said that financing activities associated with the deal will be completed through both fixed income and asset-backed security offerings through a hybrid of both traditional distribution channels as well as Velocity Ledger’s blockchain-based offering.
According to the terms of the agreement, Ideanomics, a wholly owned subsidiary of SSC, will provide two distinct financing campaigns. The first of these campaigns will be in China and the second will be a global campaign. Also, the company said that the agreement terms provide it with exclusivity for financing activities outside of China.
In a statement, Guo Chao, CEO at First Auto Loan, had the following to offer with regard to the agreement with SSC:
We are very much looking forward to working with Ideanomics as we move forward on this high-impact lease financing agreement. The modernization of infrastructure in China is paramount to the success of our national economy and converting our existing fleet of ridesharing vehicles from conventional combustion systems to those of modern and electric systems speaks volumes of our focus on energy conversation and efficiency. We couldn’t be prouder to do so than with Ideanomics, a company that is leaning forward in financial technology, and whose mission and vision are aligned with the future of financial markets.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Seven Stars Cloud Group, the news proved to be incredibly positive. After all, the new agreement will substantially increase revenues, and that’s enough to excite just about any investor. So, we’re not surpirsed to see investors reacting by sending the stock on a run for the top. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:30), SSC is trading at $5.31 per share after a gain of $0.84 per share or 18.79% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on SSC. In particular, we’re interested in following the story surrounding this deal as well as the company’s growth in revenue as a result of it. Nonetheless, we’ll continue to keep our eyes on the news and bring it to you as it breaks!
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