The Ebet Inc (NASDAQ: EBET) stock price surged up to 53% premarket before quickly giving up most of its gains to trade up 26.72% at the time of publishing. The rally in EBET stock can be attributed to significant investor interest in the gambling company due to the lack of news releases from the firm.
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The last significant announcement from EBET was a registered direct offering at the beginning of February, which netted the company gross proceeds of $6.5 million after selling over 6,372,530 shares of common stock and warrants to purchase 6,372,530 shares of common stock at a combined purchase price of $1.02.
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The offer price of $1.02 was significant since it represented a premium to the firm’s prevailing share price at the time and could have been the perfect trigger for EBET shares to cross back above the crucial $1.00, which would bring it back into compliance with the Nasdaq’s listing rules.
However, the stock only traded above $1.00 for a day before falling below the crucial figure. Still, there is hope for EBET stock, given today’s rally in its share price, which took it close to the $1.00 figure, but the sellers quickly forced the stock back below the critical level.
On another note, EBET director Christopher Downs acquired 6,300 shares of the company’s stock by converting restricted stock units into common shares. Downs did not pay to acquire the shares, are reported by the company in a regulatory filing on Friday.
Some analysts have opined that the transaction might have triggered investor interest in the company, but given its low value, I beg to differ. It is more likely that the renewed investor interest in the stock has more to do with the Super Bowl LVII, which was on Sunday.
The Super Bowl is well documented as the number one sports gambling event in the United States, with experts opining that Legal Sportsbooks will accept about $1.1 billion in bets this year. The size of illegal bets is expected to surpass legal bets, making the Super Bowl a multi-billion gambling sports event.
*This is not investment advice.
The EBET stock price rose 53.06% to trade at $0.9000, from Friday’s closing price of $0.5880.
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