One of the companies to have come into sharp focus this week among investors is Exxe Group Inc (OTCMKTS:AXXA). The company is involved in acquisitions across a range of sectors starting from real estate and sustainable technology to media and financial services among others. It is, in essence, an acquisition focussed company.
Formation of Multi-Million Dollar FinTech Trading Services Operation
Exxe acquires controlling stakes in companies that the company deems undervalued and then works towards improving financial performance. It does so by providing those companies with access to capital and through management nous. Following the announcement from Exxe on Thursday, the stock rallied strongly and gained as much as 50%. In such a situation, it is perhaps important for investors to take a closer look at the developments.
On Thursday, the company announced that it is going to merge some of the FinTech assets into its financial services and trading arm AXXAInvest. However, that is not all. Exxe went on to state that this manoeuvre is going to open up revenues to the tune of millions of dollars on a yearly basis. It was further revealed that there is going to be a peer to peer real estate services platform at the basis of AXXAInvest. It is designed in such a way that customers are going to get far easier access to real estate projects of higher quality.
In addition to that, it will also help customers in getting better access to investment capital, while at the same time reducing the cost of such transactions.
However, the more important bit from the announcement was that AXXAInvest has projected that its revenues are going to get an immediate boost due to this restructuring. The company’s quarterly gross revenues stand at $4.5 million at this point in time. Exxe has projected that following this merger, the quarterly revenue base of AXXAInvest is going to rise by as much as 100% and hit $9 million.
Hence, it is easy to see why the Exxe stock experienced a remarkable rally on Thursday. It remains to be seen if the stock can continue to add to its gains today. Investors could do well to keep an eye on the price action.
Earlier on in June, the company had completed the acquisition of a high growth United Kingdom-based FinTech platform. The main product on offer is FX Platform, which is expected to generate as much as $100 million annual transactions. The acquisition further strengthened Exxe’s FinTech portfolio.
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