Alliance MMA Inc (NASDAQ: AMMA) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced that it plans on moving forward with an acquisition that’s proving to be the source of excitement for investors. Today, we’ll talk about:
- The acquisition news;
- what we’re seeing from AMMA as a result; and
- what we’ll be watching for ahead.
AMMA Announces Acquisition News
As mentioned above, Alliance MMA is having an incredibly strong start to the trading session this morning after announcing acquisition news. In a press release issued early this morning, the company announced that it has signed a definitive agreement under which it will acquire SCWorx in an all-stock transaction.
In the release, AMMA said that upon the closing, on a pro forma basis for the combined company, existing AMMA shareholders will own 20% and SCWorx shareholders will own 80% of the issued and outstanding common stock.
This acquisition will push Alliance MMA into the software as a service industry. In particular, the company will be providing various software services to the health care market. In a statement, Marc Schessel, CEO at SCWorx, had the following to offer:
Our forthcoming combination with Alliance MMA should enable us to achieve a major milestone, as our listing on the NASDAQ should lead to enhanced growth, viability and market opportunities. We are proud of the consistent performance and progress that led to this opportunity, and we are confident that our leading SaaS platform will attract new shareholders and investors as a Nasdaq-listed company.
The above statement was followed up by Joel Tracy, Chairman of the Board at AMMA. Here’s what he had to offer:
We are looking forward to completing the transaction with SCWorx. They are among the leading data normalization software providers that are changing the way health care providers control and utilize their data to drive more successful clinical outcomes for patients.
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 Alliance MMA, the news proved to be overwhelmingly positive. After all, before the agreement, the company was a struggling talent scout for the mixed martial arts space. After the transaction, the company will be a health care software service with meaningful revenue that’s growing. So, it comes as no surprise to see that excited investors are sending the stock for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:48), AMMA is trading at $0.52 per share after a gain of $0.32 per share or 160.79% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on AMMA. In particular, we’re interested in following the story surrounding the company’s merger and excited to see if this turns things around. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!