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AVC Technologies (AVCT) Stock Price Surged 41.7% on New CEO

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Updated 26 Aug 2022

Key points:

  • The AVC Technologies stock surged 41.7% after naming a new CEO.
  • The cloud communications provider also appointed new directors.
  • In addition, the company is considering a possible sale or asset disposal.

The American Virtual Cloud Technologies Inc (NASDAQ: AVCT) stock price surged 41.7% after announcing the appointment of a new CEO. The cloud-based industry-leading communications services provider appointed Kevin Keogh as its Chief Executive Officer (CEO).

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The technology company also announced multiple changes to its board of directors promoting the former CEO, Darrell Mays, to become its new Executive Chairman. At the same time, Adrian Foltz and Onex Evans were named as the new CFO and CAO, respectively.

Also read: The Best Cheap Tech Stocks Under $10.

Investors cheered the new board appointments, as evidenced by the AVC Technologies stock price rally during premarket trading since the changes were announced after the markets closed on Thursday evening.

The company further said that it had retained the services of Northland Capital Markets to advise it on a review of its strategic options, including a potential sale of the business or disposal of selected assets.

Investors cheered the announcements, which could unlock additional value for shareholders if the company is sold at a premium to its current market capitalisation.

But unfortunately, the AVC Technologies stock price has fallen over 94% this year, leaving the company valued at a mere $19.7 million, compared to its valuation in January 2021 when its shares were trading above $9.

AVC Technologies board is looking to save the company by considering a potential sale of the business or its assets, given that its current market valuation does not reflect the value of its assets, brands and revenue streams.

After the strategic review, the company’s shareholders will closely monitor its next steps to see what the new CEO and executives suggest.

*This is not investment advice.

AVC Technologies stock price.

AVC Technologies stock price 26-08-2022
Source: Tradingview

AVC Technologies’ stock price surged 41.69% to trade at $0.19, rising from Thursday’s closing price of $0.136.