Paltalk Enters Into An Agreement To Acquire Newtek Technology Solutions From NewtekOne For A Cash Consideration Of $4M And Issue Newtek 4M Shares Of A Newly Created Series Of Paltalk's Preferred Stock, The Series A Non-Voting Common Equivalent Stock
Portfolio Pulse from Benzinga Newsdesk
Paltalk, Inc. (NASDAQ:PALT) has entered into a definitive agreement to acquire Newtek Technology Solutions, Inc. from NewtekOne, Inc. (NASDAQ:NEWT) for $4 million in cash and 4 million shares of a newly created series of Paltalk's preferred stock. The acquisition will enhance Paltalk's offerings in server hosting, cloud hosting, data storage, and managed security services.
August 12, 2024 | 1:08 pm
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POSITIVE IMPACT
NewtekOne, Inc. will receive $4 million in cash and 4 million shares of Paltalk's preferred stock from the sale of Newtek Technology Solutions. This transaction will provide Newtek with liquidity and potential future equity upside.
The sale will provide Newtek with immediate liquidity and potential future equity upside through the preferred stock. This could positively impact Newtek's financial position and stock price in the short term.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Paltalk's acquisition of Newtek Technology Solutions for $4 million in cash and 4 million shares of preferred stock is likely to enhance its service offerings in server hosting, cloud hosting, and managed security.
The acquisition will likely enhance Paltalk's service offerings, potentially leading to increased revenue and market share. The issuance of preferred stock may have a dilutive effect, but the strategic benefits outweigh this in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100