One of the stocks which had managed to make a notable move on Wednesday was that of Xalles Holdings Inc (OTCMKTS:XALL), which ended the day with gains of as much as 5.5%. In light of the gains made by the stock, it may be a good time for investors to consider taking a closer look at the developments which may have led to the rally.
Trading Data
On Wednesday, XALL stock gained 5.56% to $0.0038 with more than 97K shares, compared to its average volume of 1.53 million shares. The stock moved within a range of $0.0036 – 0.0038 after opening trade at $0.0036.
About The Company
Xalles is a holding company involved in the financial services and technology sectors. Yesterday, the company announced that it was going to acquire Private Loyalty Club Inc in a share exchange agreement. Once the acquisition is completed, Private Loyalty Club is going to be turned into a fully owned subsidiary unit of Xalles Holdings. The announcement came as a source of considerable optimism among investors and that was perhaps the reason behind the rally that was seen yesterday. It is however going to be interesting to see if the stock can actually manage to hold on to its momentum and then manage to add to its gains over the course of the coming days or not.
In this situation, it may be a good idea for investors to take a closer look at Private Loyalty Club and its business in order to have a better idea about the merits or demerits of the potential acquisition. Private Loyalty Club was formed as a corporation from an older legacy one that had been an established business for 16 years. Based out of Tampa, Florida, Private Loyalty Club is currently best known for providing the Private Wine Club offering to restaurants located in the state of California. However, that is not all. The company has expanded its range of offerings as well and currently it is also well known for providing Private Beauty Clubs.
Xalles to Acquire Private Loyalty Club to Enhance the Consumer Shopping Experience
However, more importantly, these two premium offerings are going to be strategically important for Xalles. The offerings are going to chime well with the free consumer membership program that is offered by Global Savings Network, which is a subsidiary of Xalles. The Chief Executive Officer of Private Loyalty Club, Bryce Brewer, spoke about the way in which its offerings are going to work once the acquisition is completed. Brewer noted that the offerings were going to leverage the technology that is already available with Xalles and the worldwide footprint of Global Savings Network for the purpose of bringing about growth in the programs.
In this context, it is also important to point out that Xalles had made an announcement with regards to another acquisition not too long ago on July 19, 2022. At the time the company announced that it had reached an agreement with regards to the acquisition of the company AIgrowthHUB Inc as part of a share exchange agreement. It could well prove to be a key acquisition for the company since AIgrowthHUB is involved in the artificial intelligence space and seeks to offer specific solutions to businesses so that they can generate growth.
Key Quote
“PLC looks to leverage the payment and membership technology from Xalles and the market footprint of the Global Savings Network to grow our premium club programs. As we enhance revenue growth and profit margin improvements through our new market approaches and new technologies, we will position ourselves to launch new clubs on the same business model foundation”, described Bryce Brewer, CEO of Private Loyalty Club Inc.
Technical Data
XALL stock is trading below the 20-Day and 50-Day Moving averages of $0.0045 and $0.0037 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0052 . The company has a total market capitalization of $292K.
