Inpixon (NASDAQ:INPX) stock is falling on Wednesday after the company announced the successful merger of subsidiary CXApp.
That merger saw CXApp combine with KINS Technology Group. Once the merger was complete, KINS Technology Group changed its name to CXApp. With this news, shares of CXAI stock are set to start trading on the Nasdaq Exchange today.
To go along with this, Inpixon has completed its expected tax-free distribution of the outstanding capital stock of CXApp. As a result, shareholders of INPX stock received 7,035,000 shares of CXAI stock.
Investors will note that this means INPX stockholders now own a 50% stake in CXApp common stock. 22% of those shares were issued as Class A common stock, and the other 78% were issued as Class C common stock.
What This Means for INPX Stock
With INPX distributing its investment in CXApp, its own shares are falling. That’s not unexpected, as the company has essentially spun off part of its own business into a new publicly traded company.
Investors will also keep in mind that INPX is a penny stock. That means it’s subject to heavy volatility, especially during pre-market trading. For today’s movement, shares of INPX stock are down 33.7% as of this writing.
Investors looking for even more of the latest stock market news will want to keep reading!
InvestorPlace is home to all of the hottest stock market news investors need to know about on Wednesday! A few examples include why shares of Loyalty Ventures (NASDAQ:LYLT) and Jounce Therapeutics (NASDAQ:JNCE) stock are moving, as well as the biggest pre-market stock movers this morning. We’ve got all that news ready to go at the links below!
More Wednesday Stock Market News
- Why Is Loyalty Ventures (LYLT) Stock Up 8% Today?
- Why Is Jounce Therapeutics (JNCE) Stock Up 37% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Wednesday
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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.