Alternet Systems Moves up 16% After Recent News: What Next?
One of the stocks that have made waves in the electric mobility space is Alternet Systems, Inc. (OTCMKTS:ALYI), and on Monday, the stock gained against after a major announcement from the company. Following the aforementioned announcements, the stock soared by as much as 16%, and considering the hefty gains made by the company; it could be worthwhile to have a closer look at the developments surrounding the company.
Partial Prefunding in Conjunction With $25 Million Investment Deal
On July 1, the Alternet Systems announced that it is going to get up to $2.5 million as an advance from out of the first tranche of investment worth $25 million. That investment is currently committed as per a letter of intent.
The company announced that it signed a letter of intent pertaining to the $25 million investment ahead of an initial coin offering (ICO) by Alternet Systems. The ICO is meant to raise money for the company’s electric mobility project in Africa that is worth as much as $300 million. The company further stated it is not only looking to produce the ReVolt Electric Motorcycle meant for the shared ride market in Africa. In addition to that, it intends to boost its revenues by hosting an annual electric mobility conference and symposium that will also include a major industry brand.
The prefunding that has been granted to Alternet Systems is apparently going to help the company in taking care of the immediate costs related to the event in question. The complete first tranche of the investment that is worth $25 million is expected to be completed in the next 90 days. The company aims to host this event at some point during the first quarter of next year.
Finalize Terms For Receiving $25 Million Investment
There has been a fair amount of buzz around Alternet Systems ever since the company first announced back on June 25 that it is going to get the first tranche of $25 million investment for its electric mobility project in Africa. The investment is going to give Alternet Systems a pre-money valuation of as much as $50 million.
The first tranche of the investment is going to value the Alternet Systems stock at $0.05 per share. However, there are some other things that need to be kept in mind. After the first tranche of investment does go through, the investor is going to become the controlling shareholder in Alternet Systems.
That being said, there is no plan to bring about a change in management as yet. The second tranche of the investment valued at $25 million is going to be made towards the end of this year. It could be a highly lucrative project for Alternet Systems, and back in June, the company announced that UBER’s interest in the African electric motorcycle rideshare market sparked more interest in the company.
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