What Occurred: The inventory of China-based SOS is getting a elevate from an extended report by Scorpio VC, which defended the corporate within the wake of a brief name by Hindenburg Analysis.
SOS gives cloud-based emergency companies to companies and people and has additionally diversified into cryptocurrency mining.
SOS’s foray into the insurance coverage brokerage enterprise in China in 2020 is seen as an try at enterprise transformation and an exploratory step to accumulate a nationwide insurance coverage dealer in 2021, Scorpio VC stated.
The agency additionally delved on SOS’s foray into cryptocurrency mining earlier this yr. The corporate’s cryptocurrency enterprise will seemingly obtain wonderful outcomes, it added.
Scorpio VC has a $40 value goal for SOS.
Hindenburg’s report launched Friday led to a 21% sell-off in SOS shares within the session.
“We’re quick $SOS, which we consider to be an apparent China-based shell recreation reanimating the corpse of a former China based mostly firm that earlier imploded 90% from its highs,” the quick vendor stated.
On Monday, SOS stated in an announcement that it was the topic of assaults meant to govern its inventory value.
“SOS Restricted was just lately attacked by quick sellers with distorted, deceptive, and unsubstantiated claims relating to the corporate,” the assertion stated. “The corporate additionally believes sure social media accounts of some firm board members could have been impersonated or disabled for brief intervals of time.”
Associated Hyperlink: What is Cryptocurrency Mining?
SOS Raises $96.7M Via Warrants: SOS stated in an 8-Ok submitting sure warrant holders have exercised all the present warrants to buy as much as 23.88 million ADSs of the corporate.
The train value of the warrants was $4.05 per ADS.
For exercising all the present warrants with money, the corporate stated it should difficulty every holder new warrants to buy as much as 23.88 million shares. The gross proceeds from the transaction are estimated at $96.7 million, SOS stated within the submitting.
The transaction closed March 1.
SOS stated it intends to make use of the proceeds from the providing to develop its just lately launched cloud cryptocurrency mining and cryptocurrency safety and insurance coverage enterprise in addition to for working capital and common company use.
Finally test, SOS shares have been leaping 18.24% to $8.04.
Associated Hyperlink: Can You Mine Ethereum With PlayStation 5? Here’s What You Should Know
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