Signing Day Sports expects the proposed Swifty Global buy to enhance operational efficiency, reduce costs by over 50%, and accelerate product development.
Signing Day Sports Inc. (SGN), a nano-cap stock, was the among the top five trending tickers on Stocktwits by the mid-sessoon on Wednesday as retail reacted positively to a deal announcement.
Scottsdale, Arizona-based Signing Day Sports, whose app and platform aid high school athletes in recruitment, said it has signed a stock purchase agreement to buy 99.13% of Dear Cashmere Group Holding Co.'s (DRCR) issued and outstanding share capital.
Cashmere Group, an online sports and casino technologies company, operates as Swifty Global.
Signing Day Sports said Swifty Global’s strengths and growth strategies will significantly contribute to its growth potential. The latter reported over $128 million in revenue and $2.44 million in net profit for the fiscal year ended Dec. 2023.
Swifty Global has significant growth opportunities as it expands its international gambling operations. The company also plans to offer data feed services for the online sports gambling industry, which could create new revenue streams.
Daniel Nelson, CEO of Signing Day Sports, commented, “We are thrilled to announce the signing of the SPA with Swifty Global, which reflects the shared vision and collaboration between our organizations.”
Following the deal closing, Swifty Global will operate as a subsidiary of Signing Day Sports, with financial results fully integrated into the latter’s operations.
Signing Day Sports stock jumped over 155% to $4.98 by early afternoon trading, off the day’s high of $7.24.
A stock watcher on Stocktwits said they expect the stock to rise to double-digit levels.
Some see the Swifty Global buy as a significant development.
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