American Virtual Cloud Technologies, Inc. (AVCT) stock was down by 9.34% at $2.33 premarket, at the last check on Tuesday. The stock seems to be falling down under corrections, in order to shed its previous day gains.
In the previous trading session, the AVCT stock saw a huge increase of 35.26% at the closing price of $2.57. With no new developments, the stock seems to have gained on the previous announcement of Kandy’s expansion to 40 countries.
Currently, American Virtual Cloud Technologies, Inc. has a market capitalization of $150.47 million. Moreover, the company has 71.35 million shares outstanding in the market.
AVCT’s Recent Movements
On December 15, AVCT announced that its Kandy Communications business unit has reached a total of 40 countries for its PSTN replacement service. This news caused a huge uproar in the stock, making it under-go bouts of gains followed by profit booking events. The recent gain also seems to be due to the same news, as nothing new has been posted. Hence, once again the stock has fallen under corrections and was losing further at the time of writing.
In the past five days, AVCT stock has added over 65.8% and 72.48% last month. Moreover, the stock has lost 13.03% in the past three months and 64.31% year to date.
Kandy’s PSTN Service Expansion
As per the previous announcement, Kandy’s full Public Switched Telephone Network (PSTN) replacement services now include Brazil and China. Hence, the total count of countries that has the service available now has reached 40. Moreover, this expansion has resulted in Kandy’s services being available in countries that account for 78% of the world’s GDP.
Furthermore, these services include local dial tone, local numbers and their porting, domestic calling, local toll-free, local emergency services, and Lawful Intercept. In addition, Kandy also offers Inbound DID services and Toll-free services in 87 and 105 countries respectively, representing almost 90% of global GDP.
The PSTN replacement services help businesses to transfer their telephony networks to cloud-based solutions, seamlessly.
AVCT’s Securities Purchase Agreement
On December 14, the company announced entering into a securities purchase agreement with an institutional investor. Moreover, the expected initial gross proceeds from the sale are $25 million. If all issued warrants are exercised fully, AVCT would receive gross proceeds of $76 million approx.
The company intends to use the net proceeds from the placement for funding its growth plan along with debt elimination.
