Social Reality Inc (NASDAQ: SRAX) is flying early on in the pre-market hours this morning, and for good reason. The company announced an asset sale that will drive more than $50 million through the door. Of course, the news excited investors who are sending the stock screaming for the top. Today, we’ll talk about:
- The asset sale;
- what we’re seeing from SRAX as a result; and
- what we’ll be watching with regard to the stock ahead.
SRAX Climbs On Asset Sale
As mentioned above, Social Reality is having an incredibly strong start to the trading session this morning after announcing an asset sale. In a press release issued early this morning, the company announced that it has signed an asset purchase agreement surrounding the sale of a controlling interest in its healthcare and pharmaceutical digital advertising product line. The product line is known as SRAXmd. In the release, SRAX said that it sold the asset for a total consideration of up to $52.5 million. It is expected that the transaction will close on or around August 7, 2018.
In a statement, Christopher Miglino, CEO at SRAX, had the following to offer:
SRAX’s long standing goal has been to leverage our proprietary technology to build and monetize distinct verticals in digital advertising. SRAXmd has consistently demonstrated great opportunity in healthcare and its abilities to operate in a stringent regulatory environment. This transaction gives us the benefit of the long-term growth we have been experiencing in MD, which we believe will be worth significantly more in the future while providing us the capital we need to grow our other verticals and to bring Big Token to market.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes moves. In the case of Social Reality, the news proved to be overwhelmingly positive. After all, this asset sale will not only drive more than $50 million in funding for the company, it will allow it to focus its resources on its core business. So, it comes as no surprise that excited investors are sending the stock on a run for the top this morning. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (7:15), SRAX is trading at $6.13 per share after a gain of $0.53 per share or 9.46% 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 SRAX. In particular, we’re interested in following the story surrounding the company’s asset sale and use of the funds generated through the transaction. Nonetheless, we’ll continue to follow the news closely and bring it to you as it breaks!
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