Galaxy Next Generation Inc (OTCMKTS: GAXY) made a huge announcement just minutes ago. The company announced that it has completed a transaction that greatly reduces its debt. Today, we’ll talk about:
- The transaction;
- what it means for GAXY stock; and
- what we’ll be watching for ahead.
GAXY Announces Transaction Completion
As mentioned above, Galaxy Next Generation released positive news today. The company announced that as of February 6, 2019 it completed the transfer of common stock of its wholly owned subsidiary known as FLCR Entertainment.
In the announcement, the GAXY said that the transfer was made in fulfillment of and in compliance with the terms of the Merger Agreement that it entered on June 6, 2018.
The closing of the transaction proves to be a significant one for the company. After all, with the transfer of its subsidiary, the company now has the ability to focus on its core products. Moreover, the transaction improves the balance sheet by reducing the company’s consolidated debt by $5 million. So, it’s a win all around.
In a statement, Gary Lecroy, CEO at GAXY, had the following to offer:
This is among the best things that has occurred for the company since we became public as it is, in essence, a new beginning that allows us to target all of our energies into what we do best.
The company also said that it is expecting to release its earnings for the second quarter on or befor February 15, 2019.
What This Means For GAXY Stock
At the end of the day, the news is great for the company and its investors. The $5 million reduction in consolidated debt bodes well for a company that, according to its balance sheet, had just over $7 million in liabilities to begin with. Ultimately, this reduction in debt helps to lay a financial foundation from which the company has the ability to grow.
Moreover, the transaction allows Galaxy Next Generation the opportunity to focus on its core products and increasing revenue and profitability through them.
GAXY was already a stock that was on the CNA Finance radar, as you can see from this post. However, with today’s announcement, the stock is only becoming more interesting. As the company continues to mark itself as a leader in the emerging education technology industry, the potential opportunity for investors only grows. We’ll continue to follow the story closely and bring the news to you as it breaks!