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Highlights
- Siyata Mobile Inc (NASDAQ:SYTA, SYTA:US) saw its stock price surge by more than 83 per cent on Wednesday, October 27.
- The surge came after it announced that it has inked a funding agreement for US$ 6 million.
- The tech stock has surged by about 100 per cent this week.
Siyata Mobile Inc (NASDAQ:SYTA, SYTA:US) saw its stock price surge by more than 83 per cent on Wednesday, October 27, recording a 24-hour trading volume of about 147 million.
The Montreal, Quebec-based company develops and markets cellular communications solutions, with a specialization in connected vehicle products for professional fleets.
The communication devices maker’s stock price shot up on Wednesday after it announced that it has inked a funding agreement with institutional fund manager Lind Global Partners II, LP.
The financing for gross proceeds of US$ 6 million, which is likely to come in within 10 days of the deal’s execution, is set to be in the form of a US$ 7.2 million convertible note with a two-year maturity and zero per cent yearly interest rate. The company added that it will be convertible into Siyata Mobile's common shares at a decided conversion price of US$ 10 per piece.
Siyata, after 180 days following the funding, will be mandated to repay the principal amount in 18 uniform installments on a monthly basis, where the payment can be in cash or registered common shares.
Siyata Mobile CEO Marc Seelenfreund said that the funding will provide the company with the “flexibility” it needs to hit “profitability in the coming quarters."
The capital is also set to help Siyata Mobile repay its debt, noted The Lind Partners Managing Director Phillip Valliere in the latest official statement released on Thursday.
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Now, let us take a look at Siyata’s stock and financial performance.
Siyata Mobile Inc (NASDAQ:SYTA, SYTA:US) stock performance
While Siyata Mobile’s stock price has declined by more than 12 per cent and by nearly 51 per cent on a one-year and year-to-date (YTD) basis, respectively, it has been picking up momentum more recently.
The tech stock has surged by a significant 100 per cent this week and noted a growth of about 40 per cent in the past one month.
SYTA stock also rocketed by nearly 104 per cent from its 52-week low of US$ 2.6 apiece, recorded last week, on October 22.
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Siyata Mobile latest financials
The US$ 25.5-million market company announced its second quarter results for fiscal 2021 earlier this month, where it noted a 83 per cent year-over-year (YoY) decrease in its revenues
The company also incurred a net loss of US$ 10.86 million in the latest quarter, while its adjusted EBITDA stood at US$ 4.6 million. Its cash and restricted cash amounted to US$ 5.81 million and its working capital was US$ 5.35 million as on June 30, 2021.
Bottom line
While its latest quarter results did not reflect a remarkable performance, Siyata Mobile noted that it has been gearing up “for greater distribution” in the upcoming quarters with the help of expanded partnerships, new sale hires and enhanced product offerings.
The latest funding from Lind Global Partners is also likely to boost Siyata’s performance going forward.
