One Horizon Group Inc (NASDAQ:OHGI)
Shares of One Horizon Group Inc (NASDAQ:OHGI) bounced from all-time lows after the company announced it had started work on a contract that could generate as much as $500,000 in revenue for the second half of the year. Investors reacted to the news by sending the stock up almost 65% to close at $1.23 a share.
The massive rally pushed the stock to a key resistance level of $1.50 a share. The stock is currently trading in a downtrend, in a $0.75-$1.39 trading range. The rally further goes to strengthen One Horizon Group Inc (NASDAQ:OHGI)’s compliance with the NASDAQ minimum bid requirement.
OHGI Stock Performance
One Horizon Group Inc. (NASDAQ:OHGI) is a leading provider of secure instant messaging software. The company provides real time communication to millions of people. Fuelling renewed investor interest in the stock is the company’s new contract with a Hong Kong based customer.
“As a result of this contract and expected future growth, combined with lower overheads and reduced cash outlays resulting from the recent disposition of VoIP subsidiaries, we expect the Company to be cash flow positive in the near term,” said Martin Ward, Principal Executive Officer.
The sizable contract requires the company to furnish the client with secure messaging software. The contract should go a long way in affirming the company’s push for growth. One Horizon Group Inc (NASDAQ:OHGI) has already set its eyes on China and Hong Kong’s gaming, security and education sectors in pursuit of new opportunities for growth.
During the first quarter, One Horizon Group Inc (NASDAQ:OHGI) secured a license that paves the way for it to expand its footprint in Ghana. The company is gearing up to provide the benefits of voice communications to over 18 million mobile data subscribers in the West African nation. The company is also in the process of pursuing opportunities in the mobile hot spot market having signed a licensing agreement with a leading pocket Wi-Fi service provider.
Separately, Horizon Group Inc (NASDAQ:OHGI) has repaid a debt of $662,048 owed to the Principal Officer through the issuance of 859,802 shares of common stock. In addition, the company generated a net loss of (-$1.28) million for the first three months of the year compared to a net loss of (-$1.26 million) for the corresponding period last year.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
Don’t miss out! Stay informed on $OHGI and receive breaking news on other hot stocks by signing up for our free newsletter!
About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.