JMU Ltd- ADR
(NASDAQ:
JMU
) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced that it has acquired an asset, exciting investors and sending the stock running for the top. Today, we’ll talk about:
The acquisition news;
what we’re seeing from JMU stock as a result; and
what we’ll be watching for ahead.
JMU Announces Acquisition News
As mentioned above, JMU is having a great day in the market today after announcing acquisition news. The announcement came by way of press release early this morning.
In the release, the company said that it has acquired Unicorn Investment Limited. Under the terms of the agreement, JMU purchased all issued and outstanding shares of Unicorn from its shareholder for a total of 632,660,858 newly issued shares of JMU.
The company explained that Unicorn is a developer of asset transaction platform products that are based on blockchain technologies. Mr. Haohan Xu, former owner of Unicorn is also a principal shareholder of JMU. Prior to closing, Mr. Xu held 25.7% of all issued and outstanding shares of JMU. Following closing, he will hold about 48% of all issued and outstanding shares.
The company said that the acquisition of Unicorn took place to meet the emerging demand of blockchain technology-based transactions.
What We’re Seeing From The Stock
One of the first lessons that we learn when we delve into the market is that the news tends to cause moves. In the case of JMU Ltd, the news proved to be positive.
After all, with the acquisition, an insider takes a larger share, showing a bode of confidence. Moreover, the Unicorn asset has the potential to drive significant revenue growth for the company.
So, it’s not surprising to see that excited investors are pushing the stock for the top in the market this morning. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:06), JMU is trading at $1.75 per share after a gain of $0.53 per share or 43.44% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on JMU. In particular, we’re interested in following the story surrounding the company’s continued work to expand value for investors through the closing of the Unicorn transaction. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!
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