Alliance Creative Group Inc.
Shares of Alliance Creative Group Inc. (OTCMKTS:ACGX) gained 14.9% after the full-service product development company spun off PeopleVine to a private Delaware Corporation. The Company owns 3.4 million shares of the new Private Company valued at $0.50 a share.
Investors reacted to the news by pushing the stock up the charts. However, it continues to trade in a strong downtrend after coming under pressure since early June. While the stock is up for the year, it is still down from its April highs.
Privatization of PeopleVine appears to have strengthened investors’ confidence in Alliance Creative Group Inc. (OTCMKTS:ACGX), given that the company is the largest investor in the Private entity. The new company is to start with two board members, both of whom are original founders and shareholders.
“Alliance Creative Group has been an amazing partner. Their team and capital have helped us create a significantly improved platform with even more advanced features in our all-in-one CRM marketing platform. This new structure will allow us to have more focused conversations with potential investors and partners,” said Jordan Gilman, PeopleVine Founder, and President.
PeopleVine is currently in discussions about possible partnerships and investments as it looks to strengthen its business operations in the CRM marketplace. The software platform combines CRM marketing, CMS, and sales to provide customers with a seamless engagement suite. The platform was started in 2014 with a view to providing businesses and enterprises a better and easier way of connecting with customers.
Separately, Alliance Creative Group Inc. (OTCMKTS:ACGX) has settled its long-running dispute over financing instruments with Golden State Equity investors. In exchange for preferred equity shares in ACGX, an existing investor has agreed to purchase rights that Golden state might have had in the financing instruments.
The exchange paves the way for Alliance Creative Group Inc. (OTCMKTS:ACGX) to retire its debt in full and dismissal of the lawsuit in entirety.
“This settlement and exchange agreement is a great opportunity for us to reduce our debt, resolve any uncertainty about any potential claims, and allow us to focus more on growing our business and hopefully improving our overall Company’s financials,” said Paul Sorkin, General Counsel.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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