In a surprising turn of events, WiSA Technologies, Inc. (NASDAQ: WISA) witnessed a remarkable surge in its stock price, propelling it upwards by an impressive 11% during Wednesday’s trading session. However, the excitement didn’t end there. After the closing bell, in the afterhours session, WISA experienced an astonishing additional spike of 25%, leaving many investors astonished by the sudden surge in momentum.
WiSA Technologies is a company known for its manufacturing of modules that wirelessly transmit and receive audio directly to speakers. Despite lacking significant news to justify this sharp increase, market participants speculate various factors fueling the bullish rush. Notably, a recent 13G filing revealed WiSA Tech’s issuance of 25 million shares to Joseph Reda, representing a substantial transfer of ownership amounting to 10%.
Uptick in Trading Interest
The heightened trading volume, surpassing triple the average levels, further adds to the intrigue surrounding the stock’s movement. Last week, WiSA made headlines by announcing a securities purchase agreement with institutional investors, wherein they agreed to purchase a substantial number of shares through a registered direct offering priced at-the-market under Nasdaq rules. Concurrently, the company also struck a deal to issue unregistered warrants alongside the offering.
The combined offering, priced at $0.03 per share, is estimated to yield gross proceeds of approximately $2.3 million for WiSA, before factoring in placement agent fees and other expenses. The offering is expected to conclude around March 27, 2024, pending customary closing conditions.
Current Fluctuations
Investors are now closely monitoring WiSA’s stock movements, particularly its range between $0.03 and $0.04, signaling an accumulation phase. With anticipation building for the stock to breach the $0.04 mark, enthusiasts predict a swift climb to $0.07 thereafter.
Despite the lack of concrete news driving this surge, bullish sentiment prevails among investors, eager to capitalize on the upward momentum. However, some caution that a profit-taking dip may be on the horizon in the absence of substantial catalysts to sustain the rally. Until then, bulls remain optimistic, riding the wave of excitement surrounding WiSA Technologies’ unexpected afterhours surge.
