One Horizon Group Inc (NASDAQ: OHGI) is climbing in the market early this morning, and for good reason. The company announced an asset sale, exciting investors who are pushing the stock on a run for the top. Today, we’ll talk about:
- The asset sale news;
- what we’re seeing from OHGI stock as a result; and
- what we’ll be watching for ahead.
OHGI Announces Asset Sale News
As mentioned above, One Horizon Group is having a great day in the market today after announcing that it has completed an asset sale. In a press release issued early this morning, the company said that it has offloaded its majority interest in Banana Whale Studios.
BWS is a B2B software provider in the gaming industry. According to the release, OHGI sold its stake in the asset to Velo Partners for $2 million.
Of the $2 million, OHGI received $1.5 million at closing. The additional $500,000 will be paid to the company in one calendar year as the result of a secured note that was signed at closing.
In a statement, Mark White, CEO At OHGI, had the following to offer about the transacton that closed yesterday:
We wish all the best to the BWS management team and we are grateful to have had the opportunity to work closely with them. Given our focus on expansion opportunities centered around our 123Wish Platform, related payment systems and content creation, we believe that this sale, which returned in excess of 100% on invested capital in less than nine months, is in the best interest of One Horizon’s shareholders.
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 the news leads to moves. With regard to One Horizon Group, the news proved to be very positive. After all, the asset sale will drive funding into the company while allowing it to focus its efforts on its core assets. So, it’s not surprising that investors are showing their support by sending the stock on a run for the top. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:49), OHGI is trading at $0.16 per share after a gain of $0.027 per share or 19.75% 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 OHGI. In particular, we’re interested in following the story surrounding the company’s continued work to expand its software licensing business. We’ll also be watching the use of the $2 million that was generated through the asset sale announced today. Nonetheless, we’ll keep our eyes peeled and bring the news to you as it breaks!
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