Fourth Wave Energy Inc (OTCMKTS:FWAV) Stock Slumps 32% After Merger Agreement

It was a pretty hard day in the markets for Fourth Wave Energy Inc (OTCMKTS:FWAV) investors on Monday as the stock suffered from a brutal selloff and ended up with a decline of as much as 32%. In this context, it may be a good idea for investors to perhaps take a look at the announcement made by the company on Monday.

Market Stats

On Monday, FWAV stock slumped 31.70% to $0.41 with more than 454k shares, compared to its average volume of 64k shares. The stock has moved within a range of $0.3600 – 0.6002 after opening trading at $0.60.

Fourth Wave Energy Inc. Signs Merger Agreement to Acquire EdgeMode

The company announced yesterday that it had been successful in executing an agreement by way of which it would acquire EdgeMode in a reverse triangular merger deal. While it was a significant announcement from the company, it did not lead to any particular optimism among investors and the Fourth Wave stock suffered from a major selloff.

However, it may be a good idea to take a look at how the acquisition might help the company. It has been suggested that the acquisition of EdgeMode is going to help Fourth Wave Energy in getting into the lucrative cryptocurrency mining sector. Initially, the focus is going to be in mining Bitcoin, the world’s biggest cryptocurrency in terms of market cap. Although the merger has not been welcomed by investors, it may be a good idea for investors to keep an eye on how Fourth Wave performs in the near future.

Key Quote

“Going public is a vital step in EdgeMode’s growth plan and our timing could not be better given the increased adoption and value in cryptocurrency. Fourth Wave Energy impressed us with their professionalism and the added value of the capital raise that is currently underway as part of the merger process” stated Charlie Faulkner, current CEO of EdgeMode.

Traders Corner

FWAV stock is trading below the 10-Day and 20-Day Moving averages of $0.4938 and $0.4320 respectively. However, the stock is trading above the 200-Day moving average of $0.2887.