GNS - Genius Group stock rallies in wake of lawsuit to void financing agreement

Singapore-based edtech Genius Group ( NYSE: GNS ) stock shot up 67% on Friday in the wake of news that it was suing to nullify a financing agreement with Aryrton Capital.

Shares of Genius Group opened at $2.19, dipping to an early low of $2.11 before jumping to a high of $4.30 in early afternoon. The stock recently changed hands at $3.80 at around 1:45 p.m. ET.

Genius Group said on Wednesday that it had filed suit to rescind a financing agreement with Ayrton Capital. In particular, Genius Group is challenging Aryton's alleged claim that it can convert an $18M loan into an estimated $200M in Genius Group stock.

Earlier this week, the edtech also announced was opening up a business graduate school at its University of Antelope Valley subsidiary.

The Asian edtech company has been making waves lately by launching a multi-pronged attack on alleged illegal short selling of its shares, which it believes artificially depressed the price in recent months.

Since Genius Group announced it was taking action in January, the company has unveiled plans for a dual listing, shareholder distribution and share buyback program. It also announced it was spinning out its Entrepreneur Resorts group and canceling a $7.5M at-the-market financing transaction.

Genius announced the crackdown on illegal short selling activity after its stock hit a 52-week low of $0.30 on Jan. 3. As of Friday afternoon, stock has rallied approximately 550% since the plan was announced on Jan. 19.

Genius Group went public in April 2022, raising $23M. The shares rocketed during their debut, closing 408% than their IPO price of $6 per share.

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