Alternet Systems To Finalize Terms For first tranche investment, Stock Triples in a Day
Investments had almost dried up over the course of the past months in many industries due to the carnage unleashed by the coronavirus pandemic, but things seem to be slowly coming back to normal. One of the more notable news from yesterday was the announcement from Alternet Systems, Inc. (OTCMKTS:ALYI) with regards to new investment.
Alternet To Finalize Terms For Receiving $25 Million Investment
The company announced on Thursday that it has managed to get the first tranche of investment worth as much as $25 million for Alternet System’s electric mobility project in Africa. The total value of the project has been pegged at $300 million, but the news of the investment is a major positive for Alternet.
The news proved to be a positive trigger for the stock as well, and it gained as much as 215% on Thursday as investors piled on to it following the announcement. According to the terms of the agreement, Alternet Systems is going to have a pre-money valuation of as much as $50 million, and that is entirely dependent on the $300 million valuations of the electric mobility project.
The investment pegs the value of the company’s common stock at $0.5 a share. In this regard, it is necessary to point out that the first tranche of investment is going to change the controlling entity at Alternet and the investor is going to be the controlling shareholder from now on.
However, at the same time, it should be noted that there are no plans to trigger a change of management at this time. In addition to that, the investors have alsoplanned to invest the second $25 million worth of investment before the end of $25, and that is something that is almost certainly going to be watched closely by market participants. The planned investment is also part of the Alternet’s strategy with regards to an initial coin offering of its cryptocurrency that is going to be worth $100 million.
The interest in the Alternet Systems stock might have been triggered last week only when the company announced that the letter of intent with regards to the $25 million investment had already been drafted. The company’s strategy with regards to the ambitious project in Africa is centered on commercially producing the ReVolt Electric Motorcycle. It is a product that has been developed by Alternet, and its pilot passed the design requirements at the initial stages.
Once the pilot designs are refined further by the company, it is going to help in reducing the weight of the car and also enhance the cruising range. Earlier on in the month, the company’s project got another significant boost after ride-hailing giant UBER expressed interest in entering the African electrical motorcycle market. Investors could do well to keep an eye on the Alternet stock.
Neither PSN nor its owners, members, officers, directors, partners, consultants, nor anyone involved in the publication of this website, is a registered investment adviser or broker-dealer or associated person with a registered investment adviser or broker-dealer and none of the foregoing make any recommendation that the purchase or sale of securities of any company profiled in the PSN website is suitable or advisable for any person or that an investment or transaction in such securities will be profitable. The information contained in the PSN website is not intended to be, and shall not constitute, an offer to sell nor the solicitation of any offer to buy any security. The information presented in the PSN website is provided for informational purposes only and is not to be treated as advice or a recommendation to make any specific investment. Please consult with an independent investment adviser and qualified investment professional before making an investment decision.