One Chinese penny stock is making significant waves today. MultiMetaVerse (NASDAQ:MMV) operates as an entertainment technology company and the firm hasn’t done much recently. Today, though, MMV stock is now surging to impressive levels on news of a pending acquisition.
Specifically, MultiMetaVerse announced that it’s working to acquire a major stake in children’s entertainment company TaoMee Group. This news initially sent MMV stock up more than 200%. While shares have lost some momentum since then, the stock remains highly elevated as anticipation mounts for the deal. Investors are hopeful that this represents a significant step forward for MultiMetaVerse.
Does this mean it’s time for investors to double down on MMV stock as both companies work toward finalizing the stake acquisition? Let’s take a closer look.
What’s Happening With MMV Stock?
This unprecedented surge has put MMV stock in full focus as investors react to the equity stke news. As of this writing, shares are up by around 190% for the day. This comes after a decline of more than 65% year-to-date (YTD) and a week of remaining mostly stagnant, excluding today’s rise.
While the deal isn’t finalized yet, MultiMetaVerse has signed a non-binding term sheet with sellers Dongzheng Ruibo Investment Center and Orient TM Ruibo. Back in January, MMV also signed a letter of intent to take a 72.81% equity stake in the latter company.
MultiMetaVerse Chairman and CEO Yiran Xu said the following about the deal:
“We are conducting due diligence on the Target Group with the full support of Sellers and management of the Target Group. Currently we are actively working with parties in the negotiation of a share purchase agreement, and we expect to complete the Proposed Transaction in the second half of the year. We believe that the Proposed Transaction will expand our IP brand portfolio, improve our earning base and bring good value to shareholders of the Company.”
This deal makes plenty of sense for MultiMetaVerse, as TaoMee Group has produced several popular children’s video games like “Mole’s World” and “Flower Angel.” MMV stock is likely to continue rising as these two companies move closer to finalizing an agreement. The deal has potential to take MMV out of the penny stock category, although that will require quite a bit of momentum.
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On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.