The Mode Global Holdings PLC (LON: MODE) share price rallied 53% two days after announcing that it had successfully changed its name to R8 Capital Investments Plc. The announcement was made on Tuesday, 12 September 2023.
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Investors cheered the news that could signal a new beginning for Mode Global as a different entity after the initial announcement on 21 August 2023. While there is minimal significance in a name change, the company could unveil a new strategy to support the recent rally.
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Mode Global will still retain its MODE ticker symbol, indicating some connection to its past name and the company is still involved in the fintech business for which it is well known. Looking back at my last coverage of Mode, the firm was in dire financial straits and needed to raise funds urgently after resuming trading.
At the time, I mentioned that the company had been suspended from trading on the London Stock Exchange on 2 May 2023 after multiple delays in publishing its full-year results for the 12 months to 31 December 2022.
I also mentioned that the company’s shares resumed trading on the LSE after it published its full-year results. The company has always attracted significant attention from investors due to its fintech products and services, including its Bitcoin rewards systems.
However, all has not been smooth sailing for Mode Global as it struggled to generate revenues, and many questioned the sustainability of its business model, including the Bitcoin rewards system.
The previous Mode Global article also mentioned that “Given the significant funding challenge that Mode Global faces, I would love to see the company announce a fundraising project either by issuing new shares or by taking on more debt to meet its current funding needs and keep operating as a going concern.”
The current rally in Mode Global shares is driven by positive investor sentiment towards the company despite the lack of significant progress reports except for its name change, which is inconsequential in the grand scheme. The upbeat retail investor sentiment could be the main driver behind the current rally.
Mode Global share price.
The Mode Global share price surged 25.22% to trade at 2.88p, adding to yesterday’s 27.78% rally.
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