Mer Telemanagement Solutions Ltd. (MTSL) shares soared 27.22% in after-hours on Friday, July 9, 2021, and closed the weekly trading at $6.03 per share. Earlier in the normal trading session on Friday, MTSL’s stock gained 26.40% to close Friday’s session at $4.74. MTSL shares have risen 259.09% over the last 12 months, and they have moved up 50.48% in the past week. Over the past three months, the stock has gained 43.20%, while over the past six months, it has declined 175.58%.
Let’s see is there any reason behind its exceptional gains on Friday?
Upcoming important general meeting of shareholders
On June 16, 2021, Mer Telemanagement Solutions Ltd announced to hold an extraordinary general meeting on Wednesday, July 21, 2021, at 4:30 p.m. (Israel time) at the offices of Ephraim Abramson & Co., Law Offices, 52 Menahem Begin Rd., Sonol Tower, 12th Floor, Tel Aviv, 6713701, Israel.
The meeting is scheduled to approve the previously announced merger and related transactions with SharpLink, Inc.
Noncompliance letter from Nasdaq
On May 24, 2021, Mer Telemanagement Solutions Ltd received a letter from the Listing Qualifications Staff of The Nasdaq Stock Market notifying the Company that it is no longer in compliance with the minimum stockholders’ equity requirement for continued listing on the Nasdaq Capital Market. Nasdaq Listing Rule 5550(b)(1) requires listed companies to maintain stockholders’ equity of at least $2,500,000. Nasdaq Marketplace Rule 5810(c)(2)(A), the Company has 45 calendar days, or until July 8, 2021, to submit a plan to regain compliance.
Shareholder of MTSL rejected the proposals in the last general meeting
On May 5, 2021, an Extraordinary General Meeting of shareholders of MTSL took place which voted against the following proposals.
- Proposal to terminate the service term of each of the following currently serving directors: Mr. Haim Mer, the Chairman of the Company’s board of directors, Mr. Scott Burelland Mr. Isaac Onn was rejected by a majority of approximately 61% of the vote cast; and
- Proposals to elect David Lazar, Uri Ben-Or, and Eric Greenbergto serve as members of our Board of Directors until the next annual meeting of shareholders and until their successors have been duly elected and qualified was rejected by a majority of approximately 77%, 61%, and 61% of the votes cast, respectively.
The merger agreement with SharpLink,
On April 15, 2021, Telemanagement Solutions Ltd signed a merger agreement with SharpLink, Inc.
According to the agreement, MTSL will merge into SharpLink, changing its name, and will work under new management and Board control. The merger is subject to the approval of MTS’s shareholders.
SharpLink is founded by industry veterans and is an early innovator in the sports betting conversion marketplace.
Well, MTSL is facing no hurdles with its prosed merger with SharplLink and that could be the reason behind its recent surge on Friday. investors may be expecting a smooth approval of the merger in the coming shareholders meeting which is resulting in surging oof its share price.