The9 (NASDAQ: NCTY) is having an overwhelmingly strong start to the trading session this morning after the company announced a potential share exchange transaction in the works. Of course, the news led to excitement among investors, sending the stock screaming for the top. Today, we’ll talk about:
- The potential transaction;
- what we’re seeing from NCTY as a result;
- and what we’ll be watching for haead
NCTY Gains On Potential Share Exchange Transaction
As mentioned above, The9 is having an incredibly strong start to the trading session this morning after announcing a potential share exchange transaction. In a press release issued early this morning, the company announced that it has entered into a term sheet with Plutux Limited as well as a shareholder of Plutux. Under the term sheet, the issuance and sale of 12,500,000 ordinary shares of NCTY will be offered at $1.2 per ordinary share in exchange for a minority equity interest in Plutux.
In the release, NCTY said that it expects that the transaction with Plutux will create synergies between its blockchain-related services business and Plutux’s cryptocurrency exchange business. Moving forward, the company said that it expects to establish a complete ecosystem and business model to serve its blockchain partners’ projects more efficiently and effectively.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In this particular case, the news surrounding The9 proved to be overwhelmingly positive. After all, if this transaction takes place, it will give the company an even stronger footing in the cryptocurrency space. So, it’s no surprise that excited investors are sending the stock toward the top this morning. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:32), NCTY is trading at $1.80 per share after a gain of $0.24 per share or 15.43% 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 NCTY. In particular, we’re interested in following the company’s ongoing work in an effort to become a leader in the cryptocurrency space through its own proprietary technologies as well as partnerships with other key figures in the space. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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