Troika Media Group, Inc. (TRKA) stock soared 12.28% in the current market trading session at the price of $1.27 after it completed the acquisition of Converge Direct LLC.
TRKA is a brand solutions firm that creates both short and long-term value for multinational brands in amusement, sports, and customer products. Using data science, updated technology, and world-class ingenuity, TMG builds brand equity and helps them enhance engagement with the fans and audiences.
TRKA Completed Acquisition of Converge
On 22nd March 2022, TRKA reported completing its earlier announced acquisition agreement to purchase Converge Direct LLC. This purchase marks a substantial step forward in TRKA’s consistent transformation into a global brand solutions platform with considerable financial benefits.
Converge is a top independent marketing and services-providing corporation. The company has grown to roughly US$300M in annualized revenue, US$23M in adjusted EBITDA, and US$21M in net income for the year 2021.
Converge leadership team has signed long-term employment agreements and will take an active administrative position in the merged business. Sid Toama, COO of Converge, will join TRKA’s board and work as its new President. Tom Marianacci, CEO and founder of Converge, will stay as CEO and work as a board advisor to TRKA.
TRKA Announced Public Placement
On 17th March 2022, TRKA announced securities purchase deal with institutional investors to buy its series E preferred and warrants in a private placement. The company expects gross proceeds of roughly $50 million from the private placement before subtracting the agent’s fees and other estimated costs. The offering closed on 21st March 2022 and is subject to customary closing conditions.
Under the contract, TRKA has approved to sell 5 lac shares to purchase additional 33 million shares of its common stock. Each share of the Series E preferred has a conversion price of US$1.50 per share. The warrants have an exercise price of US$2.00 per share and are exercisable instantly following the issuance.