For a long time HUMBL Inc (OTCMKTS:HMBL) had been one of the more sought-after stocks in the penny stock category and for good reason too, considering the sort of work that the company had been doing. It is fairly likely that the stock is going to come into focus among investors today as well after it made a significant announcement yesterday. First and foremost, it is necessary for investors to note that HUMBL operates a Web3, blockchain platform that is involved with both commercial services and consumer products.
Trading Data
On Thursday, HMBL stock slid 4.11% to $0.0700 with more than 15.96 million shares, compared to its average volume of 7.37 million shares. The stock moved within a range of $0.0651 – 0.0770 after opening trade at $0.0751.
Humbl Announces Entry Into Agreement To Acquire Agora Digital In All Stock Transaction
Yesterday, HUMBL came into focus after it announced that it had signed a definitive agreement with regard to the acquisition of the blockchain technology firm Agora Digital Holdings Inc. The company is involved in the Bitcoin mining space and it is a majority-owned subsidiary of the company Ecoark Holdings Inc.
While the announcement of the potential acquisition was a significant one, it should be noted that certain conditions have to be fulfilled for the whole thing to go through. The main condition for closing is that Ecoark and its team of executives would need to source a total of $10000000 in the form of capital for HUMBL before the transfer of ownership of Agora Digital goes through. On the other hand, those who own Agora Digital are going to get as much as $60000000 in for form of a new class of preferred stock for selling off their interests in the company. More details with regards to the transaction are going to be furnished in the future through the filing of Form 8-k from the company. Form 8-k will also provide details with regards to the definitive agreements as well as other related documents about the transaction.
In the press release, it was also pointed out how the acquisition is going to prove to be a beneficial one for HUMBL Firstly, Agora Digital has managed to bag a number of major power contracts and has managed to create an infrastructure that is scalable in nature for the purpose of mining Bitcoin in an ESG compliant way.
Once the funding is secured at the completion of this transaction, it would be possible for HUMBL to start generating revenues straightaway through Bitcoin mining by deploying a part of those funds. On the other hand, the management at Agora is highly experienced and has overseen the process of uplisting its stock to a bigger exchange. That expertise is going to help HUMBL considerably as it tries to uplist to a national stock exchange.
Once the transaction is completed, Brad Hoagland is going to be made the Chief Executive Officer of HUMBL, and the current CEO, Brian Foote is going to move on to the role of Executive Chairman. Hoagland is going to be responsible for the day-to-day operations of the company and will also take care of the stock uplisting process. It seems that the Agora acquisition could prove to be a major development for HUMBL in more ways than one.
Technical Data
HMBL stock is trading below the 20-Day and 50-Day Moving averages of $0.0769 and $0.0762 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.2167. The company has a total market capitalization of $103.04 million. The stock is down 11% over the past month.
