Genius Group (NYSEMKT:GNS) stock is advancing in early trading after the firm announced that it plans to merge with LZG International’s (OTCMKTS:LZGI) FatBrain AI and focus on artificial intelligence (AI).
Known as a meme stock during the pandemic, GNS stock has fallen on tough times lately. Heading into today’s trading, shares were down more than 90% for the past one year. As of this writing, however, shares of Genius Group are up over 6%.
GNS Stock and Genius’ Transformation
FatBrain AI markets and provides AI-powered software-as-a-service (SaaS) products while Genius focuses on providing education software. Following the merger, the combined company will “deliver a full lifelong learning, entrepreneurial education system to prepare humanity for the AI future.”
With 5 million students and 15,000 partners in its “marketplace,” the combined company will seek to help “entrepreneurs and enterprises […] accelerate their progress,” per Genius CEO Roger Hamilton. Last month, the two firms announced that they had jointly created an “AI Education Ecosystem.”
According to the press release, the “to be combined businesses are preliminarily estimated to have achieved approximately $80 million of gross revenue in 2023.” The represents a roughly 100%-plus increase year-over-year (YOY).
In the wake of the merger, FatBrain CEO Peter Ritz and Executive Chair Michael Moe will join Genius’ Board of Directors. Previously, Ritz helped co-found Observable Networks, which was sold to Cisco Systems (NASDAQ:CSCO). Meanwhile, Moe has been an “early investor” in multiple successful edtech firms, including Chegg (NYSE:CHGG) and Coursera (NYSE:COUR).
On Jan. 22, Genius Group estimated that its 2024 revenue would come in between $58 million and $60 million. The company also provided adjusted EBITDA guidance of between $2.5 million and $3 million for the year. Shares of GNS stock jumped on the news.
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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.
