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Glory Star Stock (NASDAQ:GSMG) surges on subscription agreement

Meme stocks have taken centerstage ignoring fundamentals and simply surging on community participation and viral buzz. Could that be the destiny for Glory Star New Media Group Holdings Ltd (NASDAQ: GSMG)? On Friday, the company announced it entered into a subscription agreement to purchase up to $10 million in ordinary shares and warrants at a fixed combined purchase price of $3.50. This news was enough for traders and investors to flock into the stock with more than 2,127,349 shares exchanged hands compared to an average volume of 2.06M and a market cap of over $180.52M.Glory Star New Media Group Holdings Limited (GSMG) opened at $2.1600 and traded between the range of 2.1300 – 2.8300. The stock currently has a 52-week range of 1.2800 – 4.8600. As per the news release, each warrant will be exercisable immediately and will expire one year from the date of issuance. The company will be using the net proceeds from the offering primarily for working capital and other general corporate purposes. The first closing of the offering is expected to close around Aug. 30.

Glory Star New Media Group Holdings Ltd. engages in the provision of advertisement and content production services. It operates through the following segments: Cheers APP Internet Business and Traditional Media Business. The Cheers APP Internet Business segment is an e-commerce platform in which shoppers can access multiple segments such as online store (e-Mall)live streaming shows original short videos and online games. The company was founded on February 52018 and is headquartered in Beijing China.