Why Did Argentum 47 Inc (OTCMKTS:ARGQ) Stock Soar 67% On Thursday?

Artificial intelligence powered digital marketing solutions providing company Argentum 47 Inc (OTCMKTS:ARGQ) is one of the companies that saw its stock make a big move on Thursday. The stock came into sharp focus among investors yesterday after it announced the sale of as many as two subsidiaries and that triggered a major rally in the stock.

Trading Data

On Thursday, ARGQ stock surged 67.54% to $0.0800 with more than 26.73K shares, compared to its average volume of 10.88K shares. The stock moved within a range of $0.0400 – 0.0800 after opening trade at $0.0479.

Argentum 47, Inc. Enters into Definitive Agreement for the Disposal of Two Subsidiaries

The Argentum stock ended up with gains of as much as 67% for the day and it is quite likely that it is going to come into focus today as well. The company’s Chief Executive Officer Brad Stephenson and his team announced yesterday that Argentum had executed the sales and purchase agreements for Cheshire Trafford UK Limited and Argentum 47 Financial Management Limited.

Both those companies are subsidiary units of Argentum. As per the provisions of the agreements, the company sold all the common shares in the two subsidiaries. However, perhaps more importantly, the sales also allowed Argentum to cut down its debts by as much as $248,000. That was possibly one of the major reasons behind the rally that was seen in the stock yesterday. It may be a good time for investors to perhaps add the stock to your watch lists.

Key Quote

“This sale of two subsidiaries that are no longer aligned with our business model was significant for Argentum because of the positive impact it has on our balance sheet in reducing our debt,” stated Robert Stephenson. The two subsidiaries sold were no longer compatible with Argentum’s business model and, by selling them, Argentum will have more liquidity and reduced interest expenses. With a stronger balance sheet, this move is indicative of management’s commitment to achieving its long-term goals of becoming a market leader in Technology, Web-Based Services, and Marketing Solutions.  

Technical Data

ARGQ stock is trading above the 20-Day and 50-Day Moving averages of $0.0515 and $0.0659 respectively. However, the stock is trading below the 200-Day moving average of $0.3651.