DPW Holdings Inc (NASDAQ: DPW) is one of the biggest gainers on the treading day of the year, as it gained by 101.65%. This came after the company announced that, its subsidiary DPW Financial Group Inc had entered into an agreement that will see it acquire two broker-dealers.
Under the deal, the company will acquire two SEC-registered broker-dealers in Glendale Securities, and it’s clearing broker-dealer. The acquisition will be completed by DPWF through the issuance of DPWF preferred stock, with an aggregate value of $15 million. To go through with the acquisition, DPW will give loans of about $9 million to DPWF.
The deal will be subject to approval by the Financial Industry Regulatory Authority (FINRA), and the company expects the transaction to go through once the deal is finalized. However, the company noted that, there was a possibility that FINRA may fail to approve the deal in the near future as FINRA had taken issue with certain aspects of the deal. Nonetheless, the company announced that it had been advised by Glendale that the brokers would take care of the issues that FINRA may have with the deal, but there still are no guarantees.
Commenting on the deal, DPW CFO, William B. Horne stated that, they had laid out their strategy for acquisition-driven growth in the last two years. He added that they were looking forward to achieving the same in the finance sector.
On his part, PDW CEO, Darren Magot stated that, they were pleased with the agreement that governed the transaction. He added that, it was a demonstration of the company’s strategy of expansion into financial services through acquisitions.
From a look at its price action, DPW Holdings Inc was in a breakout in yesterday’s trading session. It opened at $1.34 and traded between $1.31 and $2.48 before closing the day at $2.40. Volumes in the day stood at 1.98 million.
About DPW Holdings Inc
DPW Holdings Inc is a manufacturer and distributor of power systems for the military, and other industries. It is based in Newport Beach, California.