Mobile Global Esports (NASDAQ:MGAM) is trending on social media and jumping 40% in early trading. Yesterday MGAM stock soared 158% on a huge volume of over 76 million shares.
The company was founded in 2021 and organizes video game tournaments in India. And despite this massive spike in price, MGAM stock remains well below its 52-week high of $20.74. Mobile Global launched its initial public offering (IPO) last July.
The Pending Sale of MGAM Stock and a Recent Lockup Expiration
In a Jan. 25 SEC filing, Mobile Global reported that a number of entities were looking to sell as many as 4.1 million shares of MGAM stock. These entities had bought MGAM’s shares through a private placement in September. There are 20.4 million shares of MGAM currently outstanding, the company reported.
On Jan. 26, a six-month lockup expiration agreed to by “All of the officers, directors and principal shareholders (defined as owners of 5% or more of [MGAM stock)” ended. Because of that deal, all of the parties to the agreement were barred from selling their shares of MGAM until Jan. 26. However, since Jan. 26, those entities have been able to sell MGAM stock.
A New Data Officer
Yesterday Mobile Global named Nick Venezia as its Chief Data Officer. According to MGAM, “Venezia is a mathematician, social data architect, and early contributor to digital-marketing teams at Twitter, LinkedIn, and Snapchat.” It added that he “has worked with many consumer brands, helping them define and connect with their constituent audiences and prospective customers.”
More About MGAM
Even after yesterday’s huge gain, the market capitalization of MGAM was just $52.8 million heading into today’s trading. On July 25, MGAM began trading following its IPO at $11.19.
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On the date of publication, Larry Ramer did not hold (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.