DPW Holdings Inc (NYSEAMERICAN: DPW) is having an overwhelmingly strong day in the market today, and for good reason. The company announced that its subsidiary has received notice surrounding licensing. The news is proving to be exciting to investors who are sending the stock toward the top. Today, we’ll talk about the news, what we’re seeing from the stock, and what we’ll be watching for ahead.
DPW Announces Licensing News
As mentioned above, DPW Holdings is having an overwhelmingly strong start to the trading session this morning after announcing that its subsidiary has been approved for a license. In a press release issued after hours yesterday, the company said that it received notice from the California Department of Business Oversight. According to the notice, the department has issued a California Finance Lenders License to the DPW subsidiary, Digital Power Lending, LLC. The license became effective on Friday, February 23, 2018.
In the release, DPW said that Digital Power Lending will start operating immediately. The goal of the subsidiary is to provide capital financing internally to subsidiaries and divisions of DPW Holdings as well as unaffiliated businesses that qualify pursuant to its investment criterion, terms and conditions. In a statement, William “Bill” Corbett, CEO and Manager at Digital Power Lending, had the following to offer:
We are all very excited about the approval of our CFL license which allows us to build a commercial lending platform for both public and private companies. The intent is to leverage our existing long-term relationships to help create a portfolio of clients using debt and equity financing to facility their growth and that will increase DPW shareholder value through our wholly-owned subsidiary.
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 proved to be overwhelmingly positive. After all, the new subsidiary is a value addition for the company and shareholders involved with it. So, it’s no surprise to see that DPW Holdings is making a run for the top in the market today. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:09), DPW is trading at $1.87 per share after a gain of $0.18 per share or 10.65% 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 Digital Power Lending. We’re also watching the company’s moves in the cryptocurrency, commercial, and defense spaces, as all of these areas of the business seem to be experiencing exciting growth. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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