STOCKS TELEGRAPH

Tag: financial

  • Westwood Holdings Group, Inc. (WHG) Stock Surges Following USD$25 Per Share Bid by Americana Partners

    Westwood Holdings Group, Inc. (WHG) stock prices were up 19.79% some time after market trading commenced on July 14th 2021, bringing the price per share up to USD$23.43 early on in the trading day.

    Americana’s Bid

    July 14th, 2021 saw Americana Partners wealth manager make a USD$25 a share bid for WHG, representing a massive 28% premium to acquire the publicly traded financial advisory and mutual fund firm and turn it into a private company. The all-cash offer for the company by Americana will see the acuiqisiont of approximately USD$15 billion in assets under its management as of June 2021. With the company being valued at almost USD$165 million, WHG has not yet engaged with Americana.

    Americana’s Motivation

    While the company’s stock price rose by an impressive 37% since January, Americana believes that the company has produced negative returns over the past three and five-year periods. Americana also maintains that the company could benefit from being out of the spotlight of public markets, facilitating better financial performance and returns on shareholder investments.

    Building Towards the Merger

    Based out of Houston, Americana has plans to expand its scope across Texas. To facilitate this expansion, it is eyeing the company’s wealth and trust businesses, which it hopes to incorporate into its efforts. The bid came shortly after JCP Investment Management, the company’s biggest investor, began to pressure WHG management and leadership to consider alternatives for the company, including a sale, more publicly.

    Scope of Merger

    A regulatory filing from April 2021 saw the owner of JCP, which owns 10.37% of WHG, report his intentions to communicate with management and the board in regard to strategic options available to them. 2020 set records for the wealth sector, with more than 200 deals being reported to have been completed. Americana came into existence in 2019 when its principals spun off from Morgan Stanley. The company has roughly USD$4.5 billion in assets under its management.

    Future Outlook for WHG

    Armed with a potential merger that will see the company’s equity value skyrocket, WHG is poised to capitalize on the confidence inspired by Americana’s bid. Current and potential investors are hopeful that management will be able to leverage its resources and expertise in order to make an effective strategic decision for the company that will ensure long-term and organic returns to shareholder investments.

  • Cuentas, Inc. (CUEN) Stock Dips After Exercising of Warrants from February 2021 Public Offering

    Cuentas, Inc. (CUEN) Stock Dips After Exercising of Warrants from February 2021 Public Offering

    Cuentas, Inc. (CUEN) stock prices were down 14.40% shortly after market trading commenced on July 12th, 2021, bringing the price per share down to USD$4.16 early on in the trading day.

    Public Offering

    July 12th, 2021 saw the company announce the generation of USD$6.2 million from the exercising of warrants issues earlier in February of 2021. The warrants were issued in relation to the company’s underwritten public offering of 2,790,697 units, with each unit priced at USD$4.30 per unit. The offering raised roughly USD$12 million, before the deduction of expenses related to the offering. The warrants started trading on the Nasdaq Capital Market under the ticker CUENW since February 2nd, 2021.

    Inclusion in WaveMax Network

    WaveMaxannounced having been selected by TelcoDR as a part of its showcase of the most innovative mobile technologies at the Mobile World Congress in Barcelona. Cuentas has signed a contract to rollout SharedFi across 170 test locations in the New York City-Tristate area. The testing period will last 6 months, the success of which will result in the collaborative installation of 1,000 additional Bodega Stores in a 50/50 joint venture.

    Synchronicity with Execon

    The WiFi managed services company, Execon, will facilitate the implementation of WiFi6 infrastructure and manage and monitor the broadband internet at various Bodega stores. Execon will connect participating stores, while Cuentas will connect customers via the WaveMax platform, driving customer savings and greater value. The WaveMax mobile ecosystem will encourage an enhanced user and shopping experience, with Cuentas customers having access to discounts for purchases and rewards, this driving in greater net revenues.

    Healthy Financials

    The company’s balance sheet for the first quarter of 2021 improved drastically, largely as a result of a successful USD$12 million capital raising venture, The underwritten public offering saw the generation of USD$10.6 million in net proceeds. The capital raised was allocated towards the repayment of all of its financial debt, including USD635,000 to Labrys, USD$378,000 to Dinar Zuz, and a USD$260k convertible loan with interest to A.Ghershony.

    Future Outlook for CUEN

    Armed with a solid liquidity position, the company is poised to capitalize on the opportunities afforded to it by the expansive scope of its collaborative ventures. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • Paysafe Ltd. (PSFE) Stock Surges as Partnership with Wix Gains Market Traction

    Paysafe Ltd. (PSFE) stock prices were down by a marginal 0.80% as of the market closing on June 24th, 2021, bringing the price per share down to USD$11.11 at the end of the trading day. Subsequent current market fluctuations have seen the stock rise by 12.69%, bringing it up to USD$12.52.

    Notes Offering

    June 10th, 2021 saw the company announce the pricing of its previously announced offering of USD$931 million aggregate principal among senior secured notes. The offering will consist of USD$400 million of 4.00% senior secured notes, with a due date of 2029, in addition to 435 million Euros worth of 3.00% senior secured notes that will also be due in 2029. The offering has an expected closing date of June 28th, 2021, pending customary closing conditions. PSFE plans to refinance certain existing indebtedness with the capital generated from the notes offering, in conjunction with proceeds from new term facilities.

    Partnership with Wix

    PaySafe’s digital payments brand announced on June 1st 2021 that it had entered into a strategic partnership with Wix, a leading global SaaS platform wherein businesses can develop their online presence. The multi-country collaboration will see Skrill’s payment gateway being integrated with Wix to facilitate the option to accept payments for millions of business owners.

    Scope of Collaboration

    With over 200 million users worldwide, Wix provides its consumer base with a world-class platform that facilitates the building of a commercial online presence. The collaboration allows for accessible payment options in over 40 currencies, via credit and debit cards, local payment methods, and more than 80 banks globally. Integrated into the system are Skrill digital wallet and other Paysafe services, including Rapid Transfer and Paysafecash.

    Promising Research

    Paysafe conducted research in October 2020 that showed 84% of small to medium-sized businesses experienced a need to modify operations in light of the outbreak of the pandemic, specifically to appeal to a broader target market with adapting digital strategies being a core part of the strategy. 78% of the businesses that implemented changes specifically diversified their payment offerings, while 66% consequently saw an increase in sales.

    Future Outlook for PSFE

    Armed with an influx of capital to consolidate its balance sheet and an exciting new partnership, PSFE is poised to continue its trajectory of success. The company is keen to capitalize on the opportunities afforded to it in order to usher in further growth. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.