WAVD - Why Is WaveDancer (WAVD) Stock Down 7% Today?
2023-03-22 09:07:31 ET
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
WaveDancer (NASDAQ: WAVD ) stock is falling on Wednesday after the company updated investors on its Gray Matters subsidiary sale .
WaveDancer confirmed the sale of Gray Matters, its blockchain-enabled supply chain management software subsidiary, to Gray Matters Data Corporation. The lead investor of this is venture capital firm StealthPoint, LLC .
StealthPoint and its investors have committed to investing $3 million in cash in Gray Matters Data Corporation. It also has the option to invest another $1 million within 90 days of the deal.
WaveDancer retains a 20% indirect investment in Gray Matters Data Corporation. It also gets $1 million of cash from the deal, as well as $4 million in annual contingent payments over the next seven years.
What This Means for WAVD Stock
In the same news release, WaveDancer announced that it had retained B. Riley Securities as an advisor. This has the company seeking to explore strategic alternatives. That may include a merger or sale of the company.
Jamie Benoit, CEO of WaveDancer, said the following about this:
“In addition to improving cash flow, the sale of GMI provides the Company with a cash infusion that will allow us to consider a range of options that would have otherwise been foreclosed. Now that we’ve eliminated the risk and expense of commercializing new technology, we can evaluate various strategic alternatives including a business combination or a sale.”
WAVD stock is down 7.4% as of Wednesday morning.
There’s more stock market news traders need to know about below!
We’ve got all of the hottest stock stories for traders to read about on Wednesday! That includes what’s moving shares of Cerberus Cyber Sentinel (NASDAQ: CISO ), GameStop (NYSE: GME ), and Virgin Orbit (NASDAQ: VORB ) stock today. You can read all that info at the following links!
More Wednesday Stock Market News
- Why Is Cerberus Cyber Sentinel (CISO) Stock Down 12% Today?
- Why Is GameStop (GME) Stock Up 48% Today?
- Why Is Virgin Orbit (VORB) Stock Up 57% Today?
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 .
More From InvestorPlace
- Buy This $5 Stock BEFORE This Apple Project Goes Live
- The Best $1 Investment You Can Make Today
- It doesn’t matter if you have $500 or $5 million. Do this now.
- Massive Bear Market “Divergence Event” Ahead… And The #1 Way to Play It
The post Why Is WaveDancer (WAVD) Stock Down 7% Today? appeared first on InvestorPlace .