American Virtual Cloud Technologies, Inc. (AVCT), a company providing IT solutions and managed services, is consistently following a bullish trend. The stock has soared 11.88% in the premarket trading session. Consequently, the stock was trading at $1.13 when last checked. During Monday’s regular trading session, the stock gained an increase of 10.33% to close the day at $1.01. The consistent rise could be attributed to a positive development for its business unit.
Kandy Communications to Participate in Enterprise Connect Conference
On Monday, AVCT announced that its Kandy Communications business unit would provide an in-depth analysis regarding its innovations for digitally transforming customer engagement at the Enterprise Connect 2022 Conference & Expo: Let’s Re-connect! The event would be held in Orlando from 21st to 24th of March 2022.
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AVCT Closed Sale of Computex Business
On the 16th of March, AVCT announced that it had closed the sale of its Computex business to the Calian Group Ltd. The closure of the sale has completed American Virtual Cloud Technologies’ transition to a play cloud communication platform. The company said that the estimated proceeds from the sale would make it a debt-free entity. Computex was acquired by AVCtechnologies in April 2020.
Securities Purchase Agreement
In late February, AVCT reported having entered into a securities purchase agreement for the selling equities security to an institutional investor. The net proceeds from the agreement would be $15 million. An additional sum of $5 million would also be generated as net proceeds owing to fulfillment of certain conditions. The company said that it would issue a new series of convertible preferred stock according to the terms of the agreement.
What’s in Store for AVCT?
Analysts are of the view that even though AVCT stock holds several positive signals, they are not enough for it to be considered as a buy candidate. Hence, at the current level, the stock should be considered a hold candidate while waiting for the upcoming developments.