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Wed, February 8 at 8:00PM ET

GSMG Stock: Why Penny Stock Glory Star New Media Is Going Gangbusters Today

Glory Star New Media (NASDAQ:GSMG) stock is after the Chinese digital media company announced a new subscription agreement that will provide it with funding.

A person watching a movie on a tablet representing GSMG.

Source: Shutterstock

This new agreement allows an institutional investor in the company to buy up to 2,857,142 shares of GSMG stock. That could bring in as much as $10 million for the company and some shares are already being sold.

Glory Star New Media notes that the initial deal includes 571,428 shares that will be sold to the investor. This will have the company gaining about $2 million from the deal at the agreed-on price of $3.50 per share. This is set to take place on or around Aug. 30.

The deal between Glory Star New Media and the institutional investors doesn’t just include shares of GSMG stock. That $3.50 price per share also includes a warrant to purchase an additional share of the stock for $4.40 per share. The warrants can be used immediately and expire one year after being issued.

So what does Glory Star New Media plan to do with the funds raised from this deal? Nothing out of the ordinary. It’s just expecting to use it for working capital and other general corporate purposes.

GSM stock is seeing heavy trading on today’s news. As of this writing, more than 83 million shares of the stock have changed hands. That’s quite the jump over its daily average trading volume of about 210,000 shares.

GSMG stock was up 39.3% as of Thursday afternoon.

Investors looking for more hot stock market news will want to keep reading.

InvestorPlace offers up all the latest stock news that traders need to know about. For today, that includes a midday market update, why Blue Water Acquisition (NASDAQ:BLUW) stock is swelling, as well as what has Lordstown Motors (NASDAQ:RIDE) heading higher. You can learn all about these topics at the following links!

More Thursday Stock Market News

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks. Read More: Penny Stocks — How to Profit Without Getting Scammed

Article printed from InvestorPlace Media, https://investorplace.com/2021/08/gsmg-stock-why-penny-stock-glory-star-new-media-is-going-gangbusters-today/.

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