Shares of Genius Group (NYSEMKT:GNS) stock are surging higher ahead of the education company’s spinoff record date of Aug. 31. Shareholders who own settled shares of GNS as of Aug. 31 will be eligible to receive shares of Entrepreneur Resorts Ltd (ERL). Genius has specified that “shares purchased and held 2 days or more prior to August 31, 2023” will be eligible for the spinoff. The exact amount of ERL shares received per GNS share owned will be disclosed after the record date.
On Aug. 1, Singapore’s High Court approved Genius’ spinoff of ERL, deciding on a capital reduction and share spinoff worth $38.38 million of restricted ordinary ERL shares. These shares “may be eligible” for restriction removal and Upstream trading accessibility six months after the distribution date “if certain requirements are met.” The distribution date is expected to be on or about Sep. 29, while shareholders who are eligible for the distribution shares will be notified sometime in September.
GNS Stock: ERL Spinoff Record Date Approaches
ERL already trades publicly on the main board of the MERJ Exchange in the Seychelles. Genius has initiated the process to transfer ERL to Upstream, which is expected to take between 30 and 45 days. Upstream is the “first regulated exchange to be powered by blockchain technology.” According to Genius, the exchange does not allow short selling or market manipulation. Unlike traditional exchanges, Upstream also allows trading with both fiat currency and USD Coin (USDC-USD).
“As a fully regulated overseas stock exchange, Upstream is a peer to the OTC markets (i.e. Upstream is not a mini-market like an ATS or MTF). This means qualified issuers may cross-list Upstream securities in other global markets,” explained Genius.
Meanwhile, Genius recently submitted its 2022 annual report. The report showed sales of $18.19 million for the year ended Dec. 31, 2022, compared to $8.29 million year-over-year (YOY). At the same time, gross profit grew to $8.63 million compared to $2.75 million. While these numbers seem impressive, operating expenses increased dramatically to $50.50 million from $7.25 million. About 56% of these expenses were attributed to a $28.2 million impairment loss on goodwill, while most of the remaining expenses were due to general and administrative expenses. That resulted in a net loss of $55.25 million, up significantly from $4.48 million YOY.
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On the date of publication, Eddie Pan 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.
