Xalles Holdings Inc. (OTC:XALL) Stock Soars 23%: Here is Why
The financial technology sector has garnered a lot of attention from investors over the course of the past years, and it is expected to continue to do so as the industry continues to grow. There are many companies that one can choose from with regards to fintech, and one of those is Xalles Holdings Inc. (OTC:XALL). It operates in the form of a holding company and remains a leader in the fintech industry. It is a specialist in financial services solutions and innovative technology.
On September 29, the company was in the news cycle after it made an announcement with regards to the progress it had made about an acquisition. Xalles Holdings announced in its news release that it continued to have the support of the investment community and its shareholders in the company’s growth and expansion strategies.
The company wanted to inform the stakeholders about the changes that had been made to the projected acquisitions as well as the timeline for the same, which had been earmarked for the conference call in May. The company started the third fiscal quarter with due diligence and negotiation processes related to some primary acquisition targets. However, Xalles decided against going through with some of those companies. The company further noted that there were a number of companies in its deal pipeline that were eager to become fully owned subsidiaries of Xalles under the Roll In, Selected Exit, or RISE model.
Xalles notified us in the update that it was working on 10 deals concurrently and expected that a few of those negotiations would eventually result in acquisition-related announcements. The company went on to note that it was committed to boosting its financial position through both the organic growth of the assets it acquired previously and internal projects as well as new acquisitions.
The company was in focus on September 22 as well when it came up with a range of updates for its shareholders. The company noted at the time that it was transforming its business model to RISE. The model was launched in August, and since then it has been received positively by companies that are acquisition targets of Xalles.
The feedback from potential investors has also been positive. The company pointed out that the new model had also helped it progress many of the acquisition deals in the pipeline. At the time, Xalles revealed that shareholders should expect a number of announcements pertaining to those acquisitions in the upcoming weeks. In order to chart its path, the company also opted to go for a major fundraising initiative. That would involve a two-pronged approach.
The company would look to raise fresh funds through private sources and then go for a Reg A+ offering. To that end, Xalles announced that it had adjusted the number of authorized shares of its common stock to five billion from two billion. It was the only increase that had been affected by the company since September 2019. The company went on to add that it had no plans to opt for a reverse split of the common stock as part of the initiative.
