FingerMotion (FNGR) Stock Jumps 34% After Hours: What's Going On

FingerMotion, Inc. (NASDAQ:FNGR) shares rose 34.35% to $0.18 in after-hours trading Tuesday after the company announced it had entered into a definitive Share Purchase Agreement to acquire 100% of Newbit Technology Inc. FingerMotion is a technology company developing a North American behind-the-meter power and compute program in Alberta, in addition to its historical mobile data and telecommunications platforms. The Newbit Agreement FingerMotion signed the agreement, dated Sept. 23, with individual shareholders of Newbit, the entity that holds the land rights, permits and infrastructure associated with FingerMotion’s previously disclosed 9.9 MW behind-the-meter site in Alberta, according to a press release. Under the agreement, FingerMotion will purchase 100% of Newbit’s outstanding shares for US$2.3 million in cash on a cash-free, debt-free basis. A deposit of US$230,000 was previously paid, with a further US$230,000 payable on execution of the agreement and the remaining approximately US$1.84 million payable in cash at closing. Closing is targeted on or before Oct. 29. The agreement implements a binding memorandum of understanding dated Sept. 8 and a binding commitment the company announced Sept. 10. Read Also: KALA Bio (KALA) Shares Soar 57% After Hours: Here's Why What Newbit Brings Newbit holds the surface tenure, development and building permits, pipeline and metering infrastructure, and related rights associated with FingerMotion’s previously disclosed 9.9 MW behind-the-meter site in the County of Newell, Alberta, known as Brooks Campus #1. The prior gas supply agreement for the site has been terminated. Newbit and Pivotal Energy Partners have entered into a letter of intent for a new gas supply agreement, which FingerMotion said is a condition to closing. Trading Metrics, Technical Analysis FingerMotion has a market capitalization of approximately $10.60 million. Over the past year, FingerMotion shares have fallen 91.28%. The stock has traded between a 52-week high of $2.20 and a 52-week low of $0.13. Benzinga’s Edge Stock Rankings show a negative price trend across short-, medium- and long-term time frames. Price Action: In the regular session, FingerMotion shares fell 2.69% to close at $0.14 on Tuesday. See More: Top Growth Stocks Photo: tadamichi on Shutterstock.com