SOS Ltd. (SOS), a company providing data mining and analysis services, has seen an increase of 8.04% in the premarket trading session. As a result that, SOS stock is currently changing hands at $3.09. In Wednesday’s trading session, the SOS stock rose some 5.54% and closed the day at $2.86.
Investigations against SOS
In recent months, different law firms have been actively pursuing investigations against SOS. They include Levi & Korsinsky LLP, Schall, Jakubowitz, and numerous others. The investigations revolve around the fact that during the Class period (between July 22, 2020, and February 25, 2021), the officials of the company made a number of misleading statements, and besides, they misrepresented the true nature, location, and existence of one of the principal executive office. It also misrepresented the existence of mining rigs that it claimed to have purchased. As a result of that, the company is accused of reporting false and misleading public statements during that time.
SOS partnership with Niagara Development
On 21st of June, SOS announced that it had entered into a joint venture agreement with Niagara Development LLC; a New Jersey based Liability Company. According to the details, the joint venture is about mining the crypto-currency, and besides, to construct an operation center, composed of digital super computing system. The agreement holds Niagara responsible for the provision of 150 Megawatts of electricity, particularly the one produced from renewables, and besides, the construction of a digital supercomputing custody operation center. On the contrary, SOS would be responsible for all the management-related aspects of the project. Yandai Wang, Chairman of SOS, commented on the occasion that SOS remains optimistic to look for new avenues toward expansion across the globe.
SOS Stock Fiscal 2020 financial results
On the 5th of May, SOS released the financial results for the fiscal year 2020. According to those, the company had generated revenue of $50.28 million during the year, while during the preceding year; it generated $11.57 million in revenues. The cost of revenue stood at $37.29 million during the year, while in 2019, it was $9.45 million. The gross profit was $12.99 million, while during the preceding year, it was $2.11 million. The operating expenses during 2020 stood at $2.90 million, while during 2019, they were $0.36 million. The net loss stood at $4.40 million, while in 2019, $1.47 million. On the 31st of December 2020, the company had total current assets of $69.76 million, while on 31st of December 2019; it had assets of $20.55 million.
Securities purchase agreement
On the 29th of March, SOS entered into a securities purchase agreement with some institutional investors. According to that, the company agreed to sell 25,000,000 of its American Depositary Shares (ADSs) and warrants, to purchase 25,000,000 ADSs (the “Offering”), for gross proceeds of approximately $125 million. The company said that the warrants would have an initial exercise price of $5 and would be exercisable for a period of five years.
What’s ahead for SOS stock?
Statistics present an optimistic outlook for SOS in the near future. The EPS of the company is expected to increase by 106.80% during the current year. Past indicators depict during year-to-date, SOS stock has grown by a massive 93.24%. All these figures show that SOS stock is expected to keep momentum in its favor in the near future. So, potential investors should keep watching SOS stock performance.
