Pareteum Corp (NYSEMKT: TEUM)
Pareteum Corp is a stock that the CNA Finance team has been watching all morning. Early in the pre-market hours, our partners at Trade Ideas informed us of a massive gain in the value of the stock. However, as we started digging, it seemed as though there was no news out there. However, at the open, TEUM was halted. Below, we'll talk about what we know thus far, what we're seeing from the stock, and what we'll be watching for ahead.
What We Know Thus Far With Regard To TEUM
First and foremost, we know that Pareteum Corp has been halted. This comes after a premarket spike in value. In our search, there was no recent news released. However, many are speculating that the halt has to do with follow up news associated with a note the company offered on March 7th.
In the filing on March 7th, TEUM noted that it had received conversion notices from holders of $1.15 million of its Searies A and A-1 convertible preferred stock. Those shares will be converted to common stock at a 13% discount to the public price.
However, this morning, we saw rumors that the spike in value had to do with a deal that was canceled. While no one knows quite yet, it would make sense that the deal announced on March 7 is associated with the halt.
What We're Seeing From The Stock
As mentioned above, TEUM had an incredible time in the pre-market hours before being halted this morning. Ultimately, the halt took place at 9:23, and is continuing as we speak. The stock was halted at $2.18 per share after a gain of $0.67 per share or 44.37% thus far.
Update (11:01) - The news just broke on TEUM, the halt was the result of an offering. The company plans on selling 2,333,334 shares of common stock at a price of $1.50 per share. The company will also be issuing 1,166,667 five year warrants to purchase common stock with an exercise price of $1.87 per share. Proceeds from the offering are expected to come in around $3.5 million before deducting underwriting discounts and estimated offering expenses. The offering is expected to close on March 15th but is subject to customary closing conditions. We'll continue to follow the story and bring the news to you as it breaks!
Update (11:05): After announcing the offering above, TEUM is taking a dive. Currently the stock is trading at $1.45 per share after a loss of $0.05 per share or 3.33% thus far today.
What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on TEUM. In particular, we're interested in learning more details as to why the stock spiked upward in pre-market hours before being halted. As always, we'll continue to watch the story closely and bring you any updates as they break!
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