This morning there could be a number of stocks that investors are going to look into given the fact that many companies saw their stocks clock substantial single-day gains. One of the companies which could well be on the radars of investors this morning is Infrax Systems Inc (OTCMKTS:IFXY), which saw its stock clock gains of as much as 25% amidst heavy interest.
However, before getting into the specific developments which may have led to the rally in the stock on Tuesday, it may actually be a good idea for investors to first get an idea of Infrax’s operations as a company.
Trading Data
On Tuesday, IFXY stock soared 25% to $0.0045 with more than 75.21 million shares traded, compared to a volume of 12.45 million shares. The stock moved within a range of $0.0036 – 0.0049 after opening trading at $0.0037.
About Infrax Systems
The company is involved in the brand incubation and acceleration space. It seeks to work towards the development of a number of product brands that could be revenue generators. In addition to that, Infrax also seeks to develop sales channels for those brands and thereby boost revenues as well as brand awareness.
Infrax Systems, Inc. Announces the Mi Pulpe Acquisition is Expected to Close the Week of July 25
Yesterday, the company was in focus after it announced that it believed that its acquisition of the company Mi Pulse Inc was going to be closed in the week of July 25, 2022. Infrax announced that the due diligence with regards to the transaction had been concluded and the final documents with regards to the completion of the transaction have also been signed.
However, that was not the only announcement that was made by Infrax on Tuesday. The company also announced that it had been successful in completing the change of its transfer agents. While all the formalities have been completed, the acquisition transaction is going to be completed once the transfer of all shares is completed and it shows up in the official shareholder records of Infrax.
In this regard, it is also necessary to keep in mind that the transaction is not going to lead to any dilution of the Infrax shares and the company is now going to issue fresh shares in order to complete the transaction. That is an important thing to keep in mind and could also be another factor behind the excitement among investors with regards to the Infrax share yesterday.
It now remains to be seen if the stock can continue to hold on to its momentum over the course of the coming days and further add to its gains. It may well be a good time to add the stock to your watch lists and keep an eye on the price action.
The acquisition of MiPulpe is expected to be a momentous one for the company since it is going to help Infrax in making a move into the fast-growing food distribution industry. MiPulpe is based out of the United States and is involved in the distribution of beverage and food products in the Latin American market. In addition to that, MiPulpe has also been working on expanding into other markets with new product offerings in the food and beverage categories. It could well prove to be a major long-term boost for Infrax.
Key Quote
Mr. Jose Pineda, President of IFXY, stated, “We have big plans for this company. We started Mi Pulpe in 2015 with first year revenues of around $650,000, and we see no reason why we cannot continue to aggressively grow the company going forward. The Latino/Hispanic population in the US is climbing at an accelerated rate and is expected to grow over 50% in the next decade. We are excited at the possibilities this merger provides to expand the Mi Pulpe product portfolio and meet our aggressive revenue growth targets.”
Technical Data
IFXY stock is trading above the 20-Day and 50-Day Moving averages of $0.0035 and $0.0032 respectively. However, the stock is trading below the 200-Day moving average of $0.0053. The company has a total market capitalization of $8.50 million. The stock is up 40% over the past month.
