DPW Holdings Inc (NYSEAMERICAN: DPW) is flying early on in the trading session this morning, and for good reason. The company provided an update with regard to the timing of distribution of shares of its subsidiary.
As you could imagine, the update excited investors, pushing the stock on a run for the top. Today, we’ll talk about:
- The update;
- what we’re seeing from DPW stock as a result; and
- what we’ll be watching for ahead.
DPW Announces Update
As mentioned above, DPW Holdings is having an incredibly strong start to the trading session this morning after providing an update. The update came via press release early in the pre-market hours.
In the release, the company provided an update on the process and timing of the distribution of Digital Farms, Inc. shares to its shareholders. This distribution was originally announced on January 14, 2019.
In the release, DPW said that a Form 10 is currently being prepared and will soon be filed with the SEC. The company also said that the final audit of Digital Farms is expected to be completed by the end of April.
The company also said that it will be announcing the ratio of Digital Farms shares to be distributed to shareholders as soon as may. Finally, the company hopes that the transaction would be completed by the end of the second quarter.
In a statement, Darren Magot, CEO at Digital Farms, had the following to offer:
The distribution of shares of Digital Farms is anticipated to coincide with the closing of our first Data Center real-estate partnership. DPW is committed to its plan to reward its stockholders with the opportunity to directly own shares of Digital Farms, Inc.
The above statement was followed up by Milton “Todd” Ault, III, CEO and Chairman at DPW. Here’s what he had to say:
As we stated during the investor conference on December 20, 2017, the Company will seek opportunities to provide added-value to our stockholders, including distributions of equity to our subsidiaries and ventures; the spin-off of Digital Farms is such a benefit and event.
We look forward to completing this for our stockholders as well as for our Company within the first half of this year. This transaction will instantly give Digital Farms a stockholder and capital base.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that it’s important to follow the news closely. After all, the news is known to move the needle.
When it comes to DPW, the update was a positive one. With shares expected to be distributed by the end of the second quarter, investors are excited.
As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:25), DPW is trading at $0.88 per share after a gain of $0.17 per share or 23.94% 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 DPW. In particular, we’re interested in following the story surrounding the company’s continued work to spin off digital farms and provide shareholders with their share of the company. We’re also watching the company’s work in the defense sector as we have seen some positive updates there as of late. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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