NASDAQ.com Sector Update: Financial
In company news, shares of digital payments processor NXT-ID Inc. ( NXTD ) surged as much as 66% Tuesday after CEO Gino Pereira provided shareholders with details of the company’s recent $5.2 million stock sale, describing it as “essential” in ramping up NXTD’s Wocket smart-wallet technology as well as its other biometric and authentication products.
The company’s stock also is getting a push higher with its promotion today from the over-the-counter market to the Nasdaq Capital Market. Shares recently were up more than 29% at $2.74 apiece, earlier streaking to a session high of $3.52 a share. The stock has traded within a 52-week range of $1.36 to $7.25 a share, declining more than 40% over the past 12 months ahead of today’s gains.
According to a letter to shareholders from Pereira released last night and regulatory documents filed earlier this month, the company successfully sold nearly 2.13 million shares of its common stock at $2.74 apiece. After underwriter discounts and other offering expenses were deducted, NXTD pocketed slightly more than $5.16 million in net proceeds.
Pereora said the new money will be used to hire new employees for key technology and marketing positions and promoting the company through social media and advertising in key markets. The company also expects to soon start a television advertising campaign along with celebrity advertising, he said.
In addition to the stock sold during the recent offering, NXTD also issued five-year warrants to purchase up to 2.13 million additional shares with an exercise price of $3.288 a share, which if fully exercised, would generate another $7 million in proceeds.
In other sector news,
(+) RCAP, Promotes company president Michael Weil to chief executive officer, effective immediately. He replaces William Kahane, who will remain a director at the company.
(-) BBCN, Signs Memorandum of Understanding with the city of Seoul, Korea, to promote the Yeouido International Financial District in South Korea as a financial hub in northeastern Asia and expanding BBCN in the region.
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