Synchronos Technologies, Inc. (NASDAQ: SNCR) is having an overwhelmingly strong start to the trading session int he pre-market hours this morning, and for good reason. The company announced that it has closed a convertible note financing agreement, leading to excitement among investors. Today, we’ll talk about the news, what we’re seeing from the stock, and what we’ll be watching for ahead.
SNCR Announces Closing Of Convertible Note Sale
As mentioned above, Synchronoss Technologies is having an incredibly strong start to the trading session this morning. In a press release issued a couple of hours ago, the company announced that it has closed a previously announced sale of $185 million in a newly created series of preferred stock. The stock was sold to Siris Capital Group, LLC.
In the release, SNCR said that Silver Private Holdings I, LLC, an affiliate of Siris, will receive 185,000 shares of Series A Convertible Participating Perpetual Preferred stock of the company. This will come in exchange for $97.7 million in cash as well as the transfer of 5,994,667 shares of common stock to Synchronoss. This represents all shares owned by Silver Private Holdings I, about 12.6% of the Company’s outstanding shares. In a statement, Glenn Lurie, President and CEO at SNCR, had the following to offer:
We are excited to close on the investment from Siris and view this as another positive step forward for Synchronoss… The additional capital from this transaction further strengthens the Company’s balance sheet and financial flexibility as we execute against our product and growth strategies. Synchronoss is delivering those next-generation cloud, messaging and digital products that companies in the technology-media-telecom (TMT) sector rely on in order to differentiate and successfully compete in the world of burgeoning data usage growth in IoT and overall customer experience. We remain optimistic about the future given our world class customer base, long-term customer relationships, and strong financial profile.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In this particular case, the news proved to be overwhelmingly positive. This new transaction will drive funding from a supporter of the company and long time shareholder. As a result, we’re seeing strong gains in the value of the stock. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:01), SNCR is trading at $9.62 per share after a gain of $2.14 per share or 28.61% 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 SNCR. In particular, we’re interested in following the story surrounding the company’s use of this new funding. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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