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Tag: Casa

  • Casa Systems, Inc. (CASA) As It Finalizes Chapter 11 Sale

    Wednesday’s trading session descended into chaos for Casa Systems, Inc. (NASDAQ: CASA) as the stock witnessed a staggering 80% plummet, leaving investors grappling with shock and disbelief. However, the tumult did not cease with the ringing of the closing bell; in the afterhours session, bears intensified their assault, driving the stock down by an additional 21%.

    The aftermath of this financial maelstrom has seen CASA’s value nosedive from nearly $0.26 to below $0.05, illustrating the severity of the situation. This stark decline followed the unsettling revelation of the company’s intent to pursue a chapter 11 sale, indicating a dire financial predicament.

    Corporate Restructuring Unfolds

    Renowned for its provision and development of digital cable video and broadband services, Casa Systems, Inc. finds itself at a pivotal juncture. In a bid to salvage value from its assets, the company has initiated a court-supervised process, filing voluntary petitions under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.

    Recent developments include an agreement to offload its 5G Mobile Core and RAN businesses to Lumine Group, a major player in the communications and media software arena. Additionally, Casa Systems has struck a deal to divest its Cable business to an affiliate of Vecima Networks, Inc., a prominent provider of broadband access and content delivery solutions.

    Amidst Uncertainty, Hope Persists

    Despite the mounting pressure exerted by short sellers, there remains a glimmer of hope amidst the uncertainty surrounding CASA’s trading timeline. With the company aiming for approval to finalize transactions by the end of April and mid-May, there exists a window of opportunity for resilient investors, looking to bank on the uncertainty, and squeeze out shorts.

    Conclusion

    As Casa Systems braces for a tumultuous period ahead, stakeholders are keenly observing developments, hopeful for signs of stability amidst the chaos. The road ahead promises to be fraught with challenges, yet with strategic maneuvers and decisive action, shareholders may yet emerge from the storm stronger than before.

  • Casa Systems Inc. (CASA) Under Corrections After Upswing on Contract from Verizon

    Casa Systems Inc. (CASA) stock swung high on April 18, 2022, during the regular trading to add 82.52%. The stock closed the session at a price of $7.10 per share while the volume of the session remained 6,178% of the average. This spike came on the heels of announcing a multi-year contract from Verizon including a $40 million equity investment.

    But the spike was soon followed by corrections in the after-hours as CASA declined by 8.17% to reach $6.52. Thus, the stock succumbed to corrections in the after-hours to shed its gains.

    Source: Parley Pro

    CASA’s New Contract

    The 5G transformation building blocks provider, CASA has secured a multi-year purchase contract from Verizon. Additionally, Verizon will also make an equity investment of roughly $40 million in the company’s stocks for 9.9% ownership.

    According to the commercial agreement, the company will provide 5G Core Network Functions to Verizon. Thus, in turn, helping power its Mobile Edge Compute (MEC) services offering. MEC technology brings computing resources to network edge onto cloud servers; as close as it gets to where data is generated.

    Market Opportunity

    The telecommunications industry is going under rapid changes as technology continues to evolve. It is now shifting towards the cutting edge 5G communications technology. The growing adoption of virtual networking architecture in telecommunications, growth in mobile data traffic and most importantly increasing M2M connections across industries are driving the market at an exponential rate. 5G infrastructure market alone is projected for growth at a CAGR of humungous 67.1% from 2019 to 2027. It is expected to reach $47,775 million by 2027 from a mere $784 million in 2019.

    Currently, being only in the nascent stage, deployment of 5G is anticipated to play a vital role in manufacturing, healthcare, aerospace & defense, automotive, and many other industries.

    CASA’s Position & Future

    Despite many supply chain hurdles in the latter part of 2021 and the prolonged impact of the pandemic, the company reported beat earnings for the year. 2021 proved to be another year of growth for the company with revenue and earnings both surpassing expectations. Thus, the company entered 2022 with the financial flexibility to navigate the near-term supply chain headwinds while continuing to grow.

    For 2022, CASA expects revenue of $380-430 million with diluted income per share of $0.10-$0.28.

    Conclusion

    Currently, CASA stock is under correction after it made some big gains on its new contract with Verizon. Moreover, with a vast market opportunity and growth plans in place, the company is looking toward another year of good performance.

  • Were There Any Significant Reasons Why The Casa (CASXF) Stock Increased 86% Last Session?

    Were There Any Significant Reasons Why The Casa (CASXF) Stock Increased 86% Last Session?

    The shares of Casa Minerals Inc (OTCPink: CASXF) closed the last session at $ 0.1986 after rising 85.96% with 42.71 million outstanding shares. Casa stock has changed hands for 14K shares, closing at a market capitalization of $8.48M. CASXF stock rises after initial tranche of a private placement closes.

    CASXF had a private placement, what was it?

    Casa recently announced that it has closed its first tranche of $ 2,050,000 under the non-brokered private placement announced on May 18, 2021.

    • 400,000 units of CASXF were sold at a price of $0.125 per unit in the initial tranche.
    • The Unit is made up of a common share of CASXF and a warrant for the purchase of a common share.
    • For the period of one year following closing, that is May 20, 2022, the holder of each Warrant will have the right to acquire one additional share from CASXF at a price of $0.30.
    • The TSX Venture Exchange has granted conditional approval to the CASXF Offering and is expected to approve it in final form.
    • In cases where the closing price of the share on the TSX Venture Exchange (the “Exchange”) exceeds $0.45 for 10 consecutive trading days, the CASXF may, at its sole discretion, elect to provide notice to the warrant holders.
    • A news release may announce the acceleration of the expiration date of the warrants at 4:00 p.m. 30 days after the date on which the Acceleration Notice was issued (Vancouver time).
    • In this case, up to thirty-five days after the Accelerated Expiry Date, all Warrants of CASXF will expire.

    Moving forward with CASXF’s private placement:

    Casa (CASXF) hopes to complete the second tranche balance of the Private Placement by the end of this month.