FingerMotion (NASDAQ:FNGR) stock gained 13% today on news of a cash-raising initiative.
The mobile data specialization company has announced a new plan to generate a cash influx that could make a difference in its future operations. In early September 2023, the company disclosed a prospectus in a filing with the U.S. Securities and Exchange Commission (SEC) that included plans to raise $300 million in new cash through the sale of “common shares, warrants, [and] subscription receipts.”
On Friday, Sept. 29, the company released a notice confirming that the prospectus had taken effect. This news has sent FNGR stock shooting up today after a week of impressive growth.
Does this mean that this little-known, Singapore-based company should be on investors’ watch lists as markets prepare for a new quarter? Let’s take a closer look at this development.
What’s Happening with FNGR Stock
With gains of more than 40% in the last week week, FingerMotion has demonstrated impressive growth. Even more important, though, is the fact that it has risen 150% in the year to date.
Much of this growth happened before news of the prospectus broke. But now that it has, investors have even more reason to watch FNGR stock. The SEC filing describes it as:
“A base prospectus that covers the offering, issuance and sale by the registrant of up to $300,000,000 in the aggregate of the registrant’s common shares, common share purchase warrants, subscription receipts and units for any combination thereof from time to time in one or more offerings.”
If this plan for raising cash is successful, it will likely help this company stay well above the penny stock line. But there are other reasons to be watching the stock. As InvestorPlace contributor Jeremy Flint notes, FingerMotion has demonstrated impressive growth potential in an emerging market and boasts strong financials. Investors should keep it on their radar as the new initiative helps the company generate more cash to help it grow.
On the date of publication, Samuel O’Brient 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.