Genius Group (NYSEMKT:GNS) stock is taking off on Monday after the education company revealed plans to spin off one of its businesses.
According to a press release, Genius Group will spin off Entrepreneur Resorts Ltd. This is a publically listed company on the Seychelles-based MERJ Stock Exchange that Genius Group owns a 97% stake in. The resort company was purchased in 2020 in a stock transfer.
Genius Group notes that the spinoff makes sense as a way to streamline its business. This will allow it to better focus on its edtech endeavors, while Entrepreneur Resorts Ltd can focus on the hospitality sector.
To go along with that, GNS expects the deal to benefit its stock. Entrepreneur Resorts Ltd’s shares currently trade for $2.75 each, and the company’s market capitalization is sitting at $37 million.
Roger Hamilton, CEO of Genius Group, said the following about the deal:
“We are fortunate to already have two public listed companies within the group, making a spinoff a viable option. While the MERJ exchange does not have high trading liquidity like the NYSE American, our future plan is to list Entrepreneur Resorts on a larger exchange.”
GNS Stock Movement Today
With today’s news comes heavy trading of GNS stock. As of this writing, more than 24 million shares of the stock have been traded. To put that in perspective, the company’s daily average trading volume is closer to 14 million shares.
GNS stock is up 32.9% as of Monday morning.
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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.