WEJO - Why Is Recruiter.com (RCRT) Stock Down 22% Today?
2023-06-07 09:01:23 ET
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Recruiter.com (NASDAQ: RCRT ) stock is falling on Wednesday after the company announced a business combination with GoLogiq (OTCMKTS: GOLQ ).
That deal has Recruiter.com agreeing to acquire certain fintech assets from GoLogiq. Among these are its CreateApp, PayLogiq, GoLogiq, and Radix businesses. This also includes related assets for these businesses.
Recruiter.com is buying these businesses from GoLoqiq with its stock acting as compensation. This will see GoLogiq obtain shares of RCRT representing an 84% stake in the company. Current RCRT shareholders will hold 16% of the company following the acquisition.
Recruiter.com notes that once this deal is complete, it will undergo a name and branding change to better reflect its combined business. Also of note is GoLogiq maintaining its current public listing for its recently-acquired GammaRey platform.
Evan Sohn, CEO of Recruiter.com, said this about the acquisition deal:
“We are thrilled to announce this significant milestone for Recruiter.com shareholders. We believe the combined transactions will unlock significant value for our shareholders while creating a new structure under which the existing Recruiter.com business can thrive.”
What This Means for RCRT Stock
Considering the major changes coming to Recruiter.com, it makes sense that the stock is down today. Current investors in the company will see their stakes diminished in light of the new stake for GoLogiq.
That has some 1.4 million shares of RCRT stock changing hands as of this writing. This is closing in on its daily average trading volume of about 2.4 million shares. It also has the company’s stock down 21.6% as of Wednesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .
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