Sphere 3D Corp (NASDAQ: ANY) is having an overwhelmingly strong day in the market today, and for good reason. The company announced that it has entered into a definitive agreement to sell a key asset, leading to excitement among investors and sending the stock screaming for the top. Today, we’ll talk about the news, what we’re seeing from the stock, and what we’ll be watching for with regard to ANY ahead.
ANY Announces Asset Sale
As mentioned above, Sphere 3D is having an overwhelmingly strong start to the trading session this morning after announcing that it has entered into a definitive agreement to sell a key asset. In a press release issued early this morning, the company announced that it would sell its Data Protection and Archive business to Silicon Valley Technology Partners LLC.
In the release, ANY said that Silicon Valley Technology Partners is an entity owned by the Chairman and CEO of the company, Erik Kelly. In order to close the deal, the entity will fund the purchase through raising capital from a coalition of private entities. The transaction has been unanimously approved by the Board of Directors. In a statement, Mr. Kelly had the following to offer:
I believe the separation of the DP&A business from Sphere 3D is excellent news for all our respective stakeholders. I am excited that the strategy we initiated last year is materializing into positive outcomes for our investors, customers, employees and suppliers… The Virtualization and DP&A businesses will become more precise through dedicated tactics that will continue to fortify the continuum of our efforts over the past year and beyond.
The above statement was followed up by Peter Tassiopoulos, President of ANY. Here’s what he had to offer:
We are pleased to have reached this agreement to sell the DP&A business… The sale of this business is consistent with the results of our strategic review and completing a transaction to render the company debt free and allows us to better focus on our Converged and Hyperconverged product offerings.
What We’re Seeing From The Stock
One of the first things that we learn when we start to dabble in the market is that the news causes movement. In this particular case, the news proved to be overwhelmingly positive. With the spin off, immediate value will be provided to Sphere 3D shareholders. So, it’s no surprise to see that the stock is making a run for the top in the market today. As is usually the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:45), ANY is trading at $2.59 per share after a gain of $0.25 per share or 10.78% 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 ANY. In particular, we’re interested in following the company after the spin off to see how better focus on core product offerings leads to gains in revenue. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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