We’ve done a lot of talking about rapidly moving subpenny stocks here on Street Register in recent weeks, and Solaris Power Cells Inc (OTCMKTS:SPCL) is another play to add to that quickly growing list (‘subpenny’, of course, refers to stocks which trade in the range of .0001-.0099 per share).
Over the past couple of sessions SPCL ran from a low of .0032 to .0098, which works out to a two-session swing of 206.2% and it has all occurred on dramatically increased volume to the tune of several times the monthly average. This was perhaps primarily catalyzed by an important PR announcement.
This week, Solaris Power Cells Inc. (OTCMKTS:SPCL) announced that it had signed definitive agreements to acquire migme (ASX: MIG) – one of Asia’s fastest growing social media platforms, with approximately 35 million monthly active users. Solaris is adding to its media technology holdings, notably distribution-as-a-service company PixelMags, which takes publishers’ content and automatically formats and natively distributes across platforms.
“This agreement shows our acquisition strategy is starting to yield positive results. After nearly ten months since acquiring PixelMags, we’re announcing our second acquisition and remain excited about the combined potential,” stated Neil Kleinman, CEO of Solaris. “This acquisition will add one of Asia’s fastest growing social platforms. Approximately 110 employees will be added to the Solaris team who will play a pivotal role in the future success of the company.”
Migme is a global digital media company with a large footprint in Southeast Asia, the fastest growing global mobile market. The platform allows stars and fans to interact together in thousands of digital chat rooms, driving longer user sessions than most other social networks. With a quarterly growth rate of 30%, migme is soon expected to join the ranks of Asia’s largest social media peers like Meitu in China and Hike in India.
Under the definitive agreements, Solaris will acquire all issued capital in Project Goth, Inc., a subsidiary of migme, which owns the operating companies, including the company’s portfolio of intellectual property. Solaris aims to integrate migme’s branded app and other properties — dating app LoveByte, artist management community alivenotdead, social news site Hipwee and ecommerce services through Sold and Shopdeca.
The agreement is subject to Solaris becoming current in its financial and SEC reporting obligations, and other conditions. Management believes the transaction will close by June 15th.
Steven Goh, CEO of migme, said, “The proposed transaction provides an opportunity for migme to be more fairly valued on an exchange that better understands technology companies, with a clear peer group to be valued against. We look forward to working with Neil and the Solaris team in creating value for all shareholders.” (Source: Marketwired)
Just last month, Lithium Exploration Group Inc (OTCMKTS:LEXG) reached a non-binding Memorandum of Understanding (MOU) with Solaris (SPCL) to license and further develop its PESA™ Energy Storage Technology. The MOU outlined licensing terms for use of the technology as a component of the Ultrasonic Generator package, as well as giving LEXG the right to continue to develop the technology for other applications. (Source: PR Newswire)
The goal was to finalize the agreements by May 1st, subject to due diligence, so we’ll be on the lookout for updates to that specific aspect of the story in coming weeks. We also want to exercise extreme caution as SPCL is designated as ‘Delinquent’ with a Stop Sign on OTC Markets, but also want to give the company the benefit of the doubt when it says it should be coming current any time now. We’ll make sure that we stay up on any developments that happen with SPCL, and pass them promptly along to our readers. Just enter your email into the box below to keep up to date on SPCL. Your info is safe with us, so sign up now!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in SPCL stock, short or long.