FOXO Technologies Inc. (NYSE: FOXO) experienced a notable surge in premarket trading on Friday, reflecting a significant turnaround from its previous trading session. After a modest 1.7% dip on Thursday, the stock rallied dramatically by 53% in premarket hours, reaching a trading price of $0.37, up from just below $0.24 at the start of the previous day.
Unexpected FOXO Surge Despite Official News
Despite the lack of apparent news, FOXO Technologies saw an impressive trading volume of nearly one million shares. This unexpected price surge has sparked speculation among investors. Many are cautious, anticipating a potential profit-taking dip soon. However, the bullish sentiment prevails as traders capitalize on the upward momentum.
Interestingly, while no major news headlines explain this surge, a recent SEC filing has caught the attention of keen market observers. The filing details a significant agreement that could be a driving factor behind the stock’s sudden rise.
FOXO Agreement with Myrtle Recovery Centers
On June 10, 2024, FOXO Technologies entered into a Stock Exchange Agreement with Myrtle Recovery Centers, Inc., and Rennova Health, Inc. This agreement, known as the Myrtle SEA, involves the company acquiring 98.4% of Myrtle’s common stock for $500,000, to be paid through FOXO’s Class A Common Stock. The exact number of shares will be determined by the volume-weighted average price (VWAP) on the day before the closing date but will not exceed 19.99% of its outstanding shares.
This strategic move positions the company to potentially benefit from Myrtle’s assets, pending the completion of the transaction and the issuance of shares or cash adjustments based on Myrtle’s EBITDA performance.
Conclusion
The recent premarket rally of FOXO Technologies Inc. highlights the market’s dynamic nature and the potential impact of strategic agreements on stock performance. While the lack of immediate news may raise concerns of an imminent profit-taking dip, the underlying SEC filing suggests that there could be more substantial developments at play. Investors will be keenly watching for the company’s official press release, expected later today, which could provide further insights and possibly sustain the stock’s upward trajectory.
