NextPlay Technologies, Inc. (NXTP) slightly declined in the after-hours. The decline was due to the announcement in its latest press release. NXTP values at around $0.58, losing about 6.5% from the previously closed value. The company’s stock closed at $0.62 in the previous trading hours. The stock volume traded in the last trading session was around 1.82 million shares.
Ample Health chooses Loongroot of NextPlay Technologies, Inc. (NXTP) for STO
It was announced today by NextPlay Technologies, Inc. (NXTP) that its licensed Longroot digital token offering platform will act as financial advisor and underwriter for Ample Health’s proposed security token sale (STO).
Ample Health is a new cannabis business in Southeast Asia that has just launched. NXTP will utilize the cash obtained through the STO to fund further growth and global expansion initiatives within the company.
Longroot will develop the STO and raise the necessary funds to launch it. It will assist Ample in obtaining regulatory approval, after which it will assist in pricing and launching the STO through the Longroot platform.
Fortune Business Insights expects the global cannabis industry to grow from $28.3 billion in 2021 to $197.74 billion in 2028, or a tenfold rise.
The transaction expects to raise between $100 and $250 million. Longroots anticipates receiving a management and placement fee from the gross proceeds of the transaction intends to close in the summer of 2022.
The effect on the stock decline
NextPlay Technologies, Inc. (NXTP) declined after this news. The decrease is insignificant, and it may regain its value in the regular trading session. The stock is volatile in these hours as most investors trade in the regular trading session.
Conclusion
NXTP may arise in the future because the company is planning to fuel its growth strategies with STO proceedings. The cannabis market is growing globally, and this diversification is a good development in the business.
