SurgePays Inc. (NASDAQ:SURG) shares are trending on Thursday night.
Shares of the Tennessee-based fintech and wireless company surged 34.59% to $0.22 after the bell after the company announced it completed the sale of its ClearLine point-of-sale engagement platform, its Managed Marketing Services platform and a turnkey prepaid wireless (MVNO) business to Las Vegas-based technology-driven direct store delivery distributor GPO Plus, Inc. for $27.5 million.
Trading Volume Spikes
In the regular session, SURG closed at $0.16, down 4.69%, according to Benzinga Pro data. The announcement, which SurgePays made after the stock closed, resonated in the late trading session.
The stock experienced an elevated trading session on Thursday. Trading volume reached 77.95 million shares, far above the average of 23.66 million. This was approximately 3.3 times the stock’s average trading volume.
ClearLine transforms payment terminals and customer-facing screens into interactive marketing tools. It provides features such as loyalty programs, geofencing, and customer reviews.
Preferred Stock, Put Option Anchor Deal Terms
According to the company’s Thursday announcement, as payment, GPO Plus gave SurgePays 25 million shares of newly issued Series D Preferred Stock. SurgePays also obtained a put option from Emerald Shoals Targeted Opportunities Fund LP. This option allows SurgePays to sell the shares, or any common stock received after conversion, back to the fund for the full $27.5 million in cash.
Brian Cox, CEO of SurgePays, said, “This is a win-win for both companies and their shareholders,” citing strong recent MVNO valuations.
Cox said the deal strengthens SurgePays’ balance sheet and lets the company focus on its core prepaid wireless and fintech operations. These operations serve roughly 138 million subprime U.S. consumers.
Trading Metrics, Technical Analysis
SurgePays has a market capitalization of about $8.84 million. Over the past 52 weeks, its stock has traded as high as $3.14 and as low as $0.15. The company has approximately 52.91 million shares outstanding.
SURG has a Relative Strength Index (RSI) of 36.72.
Over the past 12 months, the stock has fallen 94.19%.
Currently, SURG is trading extremely close to its annual low.
Benzinga’s Edge Stock Rankings indicate that SurgePays stock has a negative price trend across all time frames.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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