After its previous close of $2.17, stock for The Marygold Companies, Inc. (MGLD) had ballooned to a near double. Standing at $4.22 in the premarket, MGLD had undergone a significant drive-up in share price over the weekend. Volume during the Monday premarket topped 600,000, indicating the sheer degree of interest the stock had garnered amongst market participants. This surge in price potentially links to a range of factors discussed below.
Rebranding from Concierge Technologies to MaryGold & Co
Last week CEO of Concierge Technologies (which held the ticker CNCG) announced its decision to rename ‘The MaryGold Companies’. The change had reflected a strategic shift by the company, prioritizing its MaryGold subsidiary to launch a fintech banking app. The app holds immense potential and is potentially on the verge of revolutionizing digital banking for customers. Being in its final testing phase, financial uncertainty is relatively low, which partly explains its potential towards value creation.
The change further signals a fundamental shift in the nature of the company’s business which previously held diversified interests. The company is focusing its largest portfolio sector towards the domain of fintech, whilst simultaneously holding an interest in investment fund management, cosmetics, the food industry, and others. It further communicates the commitment of the management towards the development of its fintech sector. Despite this, the company would continue holding a profitable portfolio, whilst ensuring value maximization for its shareholders.
MGLD Uplisting in New York Stock Exchange
Last week, the MaryGold Companies announced the approval for its bid to uplist to the NYSE American. This relates to an underwritten public offering the company is working towards. As a result, the move communicates the confidence management holds in its strategic shift and its commitment to the change. Offering 1.65M shares at $2 each, MGLD anticipates to bag in gross proceeds of $3.3M during the offering.
Conclusion
MGLD Stock has seen a massive growth spurt over the weekend, and into the premarket session. This is primarily linked to a rebranding announced by the company, along with a recent underwritten public offering. The additional funds are likely to significantly enhance value enhancement, which are reflected by the rapid surge in share price. This quells fears by existing shareholders that presumably were concerned of share dilution, as a result of the uplisting.
