Shares of Verb Technology Company, Inc. VERB are experiencing significant upward momentum Friday following a shareholder letter from CEO Rory J. Cutaia. The letter highlighted the company's strong financial position and suggested that the stock is undervalued based on its cash balance and the recent stock split.
What To Know: Cutaia provided key insights into the company's current standing. Verb's market capitalization stands at approximately $3.8 million. The company holds approximately $17.2 million in cash, with only a minimal SBA loan of $125,000 at a low interest rate of 3.75%. This financial clarity led Cutaia to assert that if the stock were to trade solely based on its net cash value, it should be priced above $22 per share.
In the letter, Cutaia discussed the company's restructuring efforts, transforming it into a holding company with three distinct, revenue-generating business units. He noted that these units are experiencing growth rates that exceed previous revenue performance. One of the business verticals, currently in stealth mode, is anticipated to have explosive revenue potential once fully announced.
What Else: Cutaia addressed the recent reverse stock split. He shares that the management team and board executed this decision due to shareholder interests.
The market has reacted strongly to these developments, with Verb Technology shares initially triggering a circuit breaker after gaining more than 28% earlier in the trading session.
VERB Price Action: Verb Technology shares were up by 47.8% at $7.70 at the time of writing, according to Benzinga Pro.
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