On January 26, 2022, Eros STX Global Corp. (ESGC) stock added a good 30.24% during the regular trading session. The stock continued this bullishness into the after-hours but on a much calmer note.
After trading between $0.2630 and $0.4100, ESGC stock closed the regular session at $0.3674. Hence, adding $0.0853 at a heavy volume of 20.38 million shares on Wednesday. The stock added a further 8.85% in the after-hours at $0.3999 with 1.02 million shares exchanging.
More about ESGC and its Movement
Based in Burbank, CA, Eros STX Global Corp. along with the distribution of premium content also develops and produces it. Currently, the company has a market capitalization of $106.9 million and 207.02 million shares outstanding.
The ESGC stock has been on an uptrend for the past few days. On Wednesday investors flocked towards the stock to make it trade at 344% of its average volume. The stock made huge gains during the regular session, followed by some more gain in the after-hours. There is no recent official announcement, SEC filing, or report of any upcoming event. Hence, the stock seems to have gained on external factors and social media chatter.
Overall, 2022 has proved fruitful for ESGC, as it has gained a huge 53.27% year to date. Comparatively, the stock suffered a mammoth loss of 81.81% last year.
Definitive Agreement with The Najafi Companies
On December 07, the company disclosed a definitive agreement for the sale of its subsidiary, STX Entertainment. Therefore, for the sale of STX Entertainment, ESGC entered into a definitive agreement with an affiliate of The Najafi Companies.
The Najafi Companies which is a private investment company has notable holdings in various segments like consumer, media, eCommerce, tech, etc.
As per customary requirements, the closing purchase price for the transaction would be $173 million. Furthermore, Najafi funded a deposit of $2 million for the transaction.
According to the agreement, the company has a go-shop period of 45 days for soliciting other proposals. Additionally, a termination fee of $4.5 million was also set in the agreement.
In addition, a transaction with either Najafi or alternatives is expected to close at the end of January 2022.
ESGC’s Other News
On November 2, ESGC’s Eros Now entertainment platform launched Bollywood Film Festival on Facebook Watch. The dewali-oriented month-long film festival streamed from November 3 to December 2, 2021, with one movie premiered each day. Powered by the blockchain-based video streaming application, Mzaalo, the movies were streamed on Eros Now’s Facebook page.
