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Highlights
- Penny stocks are low-priced stocks of small companies that lack liquidity.
- Geo completed the first tranche of placement and raised $2.6 million.
- Plexure Group completed the purchase of TASK Retail on 1 October.
Penny stocks are stocks of small companies that trade at a low price and have a market capitalisation of lower than $300 million. These stocks are mostly illiquid and are usually listed on a small exchange.
Amid increased digital adoption by businesses, especially during the COVID-19 pandemic, technology stocks have gained attention.
Let’s go through how these 3 NZX-listed penny stocks in the tech space are faring.
Image source: © 2021 Kalkine Media, Data source- EODHD/Others
Geo Limited (NZX:GEO)
Geo, a smart software solutions provider for mobile enterprises, announced on 6 October that the first tranche placement of 20,276,581 shares had been completed, raising almost $2.6 million.
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The issuance of the second tranche of ordinary shares is subject to shareholder approval at the Company's FY21 annual meeting. The Group also announced raising $6 million this month by issuing shares at $0.13 per share by Placement and plans to conduct another capital raise in coming months.
Geo posted a trading volume of 62,269 on Thursday and ended the trading session flat at $0.185.
Plexure Group Limited (NZX:PX1)
Plexure, a mobile engagement software designer, on 1 October finalised the purchase of Task Retail Pty Limited, an Australian business that provides data analytics and transaction management services..
As the shareholders voted prodigiously in favour of the acquisition at the Special Meeting held on 1 October, the remaining conditions of closing the deal have been fulfilled with Daniel Houden taking over as PX1's CEO and executive director.
The deal is worth AU$120 million. Both companies are likely to benefit from the agreement by increasing their customers by using combined synergies and abilities.
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PX1 reported a trading volume of 373,293 shares and ended the trading session flat at $0.57.
PaySauce Limited (NZX:PYS)
PaySauce, a work-related software solution provider, reported strong growth in the September quarter with a 44% rise in recurring revenue to $747K YOY and a 45% increase in the processing fee revenue to $686K. Growth in recurring revenue included both PaySauce processing fees and interest income, and new SmoothPay subscription revenue recognised in the quarter.
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The Group added over 300 customers during the quarter and continued to improve its products. PYS processed over $100 million of payroll in September.
PYS reported a trading volume of 1679 shares and ended the trading session flat at $0.325, up 4.84%.
Bottom Line
Demand for technology in various sectors is increasing rapidly. Hence, investing some money in tech penny stocks can be considered due to their low price and high-growth potential.