An Emerging Markets News Commentary
ORLANDO, Fla., Oct. 16, 2019 (GLOBE NEWSWIRE) -- It is not often in the pages of the Emerging Markets Report do we get the opportunity to tell our readers that a Company is giving back roughly $425,000* worth of value to its shareholders. In fact, we never have.
But that’s precisely what Spherix Inc. (NASDAQ: SPEX) has planned for shareholders of record next week, as reflected in Spherix’s October 11, 2019 Form 8-K. Spherix, which wisely made an early investment into then private Hoth, enjoyed a Stronger balance sheet when Hoth IPO’d earlier this year. Now it wants to give a huge chunk back.
Every Spherix stockholder will be entitled to receive one share of Hoth common stock for every twenty-nine shares of Spherix common stock held as of 5 p.m. Eastern Time on October 21, 2019. Full details are here.
Basic hypothetical math…. 29 shares of SPEX purchased at yesterday’s close of $1.69 for a total of $49. Be a shareholder of record on 10/29/19 and get a share of Hoth which closed at $4.31 yesterday. Extrapolating from that model, ten thousand shares of Spherix at a cost basis of $16,900 earns the owner 344 Hoth shares worth $1,482 on paper. Barring an intraday fluctuation of more than 9% the owner under such scenario is already in the money, and essentially under such circumstances, the dividend would be like getting a roughly 9% bonus on top of a position in one of the most interesting companies we’ve ever covered in our publications.
About Spherix:
Spherix Incorporated is a technology development company committed to the fostering of innovative ideas. Spherix Incorporated was formed in 1967 as a scientific research company.
Our activities generally include the acquisition and development of technology through internal or external research and development. In addition, we seek to acquire existing rights to intellectual property through the acquisition of already issued patents and pending patent applications, both in the United States and abroad. We may alone, or in conjunction with others, develop products and processes associated with technology development. Recently, the Company has invested in and helped develop technology with Hoth Therapeutics, Inc., DatChat, Inc. and entered into an agreement to acquire certain technology assets from CBM BioPharma, Inc.
Emerging Markets Report is owned and operated by Emerging Markets Consulting (EMC), a syndicate of investor relations consultants representing years of experience. Our network consists of stockbrokers, investment bankers, fund managers, journalists and institutions that actively seek opportunities in the micro and small-cap equity markets.
*Hoth valuation based on $4.25 close 10.14.19
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A contributor to this report receives 3,500 dollars a month as a consultant to Spherix.
EMC has been paid $135,000 by Spherix for various marketing services including this report. EMC does not independently verify any of the content linked-to from this editorial. http://emergingmarketsllc.com/disclaimer.php
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This report may include forward-looking statements. No information in this report should be construed as any indication whatsoever of future financial results, revenues or stock price. These statements involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements contained herein.
