Integrated Media Technology Limited (NASDAQ:IMTE) stock is jumping after the company announced a deal to take over a blockchain project. In late morning trading, IMTE stock was jumping 30% to $5.88.
More specifically, Integrated Media agreed to “take over” a deal previously made by Hong Kong-based Joint Investment Limited. Under the agreement, Joint Investments and its previous partners were going to create a non-fungible token (NFT) trading platform using blockchain technology.
With the latest deal, Integrated Media will assume Joint Investments’ rights and obligations under the latter company’s previous agreement, a U.S. Securities and Exchange Commission (SEC) filing released today shows.
Integrated Media “will invest up to $1 million” for a 60% stake in one of Joint Investment’s former partners, Ace Corporation Limited. Additionally, Integrated Media will, in no more than 27 months’ time, give Joint Investment “a deferred performance fee” worth five times Ace’s “average annualized consolidated profits” from the first two years of the NFT trading platform’s operations. However, Integrated Media’s initial $1 million in Ace will be subtracted from that payment.
Finally, if Ace sees a listing on a major exchange by March 2027, Integrated Media will pay Ace an additional amount equal to 3% of Ace’s market value when the latter company’s stock was initially listed.
More About Integrated Media
According to Yahoo Finance, Integrated Media “focuses on the marketing and sale of autostereoscopic display (ASD) products” in East Asia and Australia.
One of the company’s products is a video wall that shows 3D advertising displays without the need for 3D glasses. Another of its offerings, Marvel Digital 4K3DPro Super Workstation, can convert content to 3D from 2D.
The company says that its CEO, Xiaodong Zhang, “has extensive experience in financial management in the capital market in China” and “has worked in senior positions in capital operation and risk control management in China.”
In 2020, Integrated Media’s total revenue was $1.75 million, while its operating income came in at -$6.15 million, according to Yahoo Finance. So far today, the company’s market capitalization was slightly over $55 million. In 2021, the shares have climbed 50%.
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article.