What's Going On With Connexa Sports Technologies Stock?

Connexa Sports Technologies Inc. CNXA shares are blasting higher Wednesday. The company announced that it has regained compliance with Nasdaq’s minimum shareholder equity rule by receiving an inward investment of $16.5 million from three non-US investors.

The Details:

According to an SEC filing, on Jan.19, Connexa Sports Technologies entered into securities purchase agreements with three investors for the issuance and sale to each investor of 2,330,200 shares of common stock and pre-funded warrants to purchase an aggregate of 25,169,800 shares of its common stock at a combined purchase price of $0.20 per share of the common stock for an aggregate amount of approximately $16.5 million.

“Following a period of productive discussions, I am delighted to welcome our three new, non-US investors into the company,” said Mike Ballardie, CEO of Connexa Sports Technologies.

“This investment also allows the company to meet the Shareholder’s Equity compliance threshold, as detailed under Nasdaq listing requirements and as evidenced by the 8-K filing issued last week,” concluded Ballardie.

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Is CNXA A Good Stock To Buy:

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Connexa Sports‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Connexa Sports Technologies does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 6.38%, you'll need to buy a share of Artisan Partners Asset by Feb. 14, 2024. Once done, you can expect to receive a nominal payout of $0.68 on Feb. 29, 2024.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Connexa Sports Techs will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

CNXA Price Action: According to Benzinga Pro, Connexa Sports Technologies shares are up 132% at 46 cents at the time of publication.

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