Pivoting away from the crypto and fintech sector, Moon Equity Holdings Corp (OTC: MONI) announced an MOU with a Californian air charter company. At the same time, MONI has plans to sell its subsidiary BitGift. Given the slump crypto markets have fallen into since last summer, this apparent pivot away from FinTech and crypto may prove to be a more profitable direction for the company. As is, MONI stock is up 270% YTD. The stock price could continue to increase with more news from the company regarding its business plans and reverse merger with the air charter company. For these reasons, investors may want to add MONI to their stock watch list as these catalysts play out.
MONI Stock News
While the name of the air charter business is undisclosed, the company has been in business since 2005 which means it is likely a well established company. Air Charter businesses have seen rising demand in recent years since they serve a variety of purposes such as cargo transport, group travel, tour operations, etc. As is, the market is expected to be worth $31.9 billion this year and increase 5.4% in value – reaching a market size of $54 billion by 2033. But MONI’s reverse merger could prove to be a turning point for the business, considering the location of this air charter company.
The market for air charters in California is lucrative, yet competitive. The state reportedly has 1,568 air charter companies which is significantly higher than New York’s 678 air charter companies. Since California is the nation’s most populous state and a hub for business and tourist activity, its air charter industry is valued at $4.4 billion. While MONI has yet to reveal more details about its reverse merger target, its industry and location could make it an ideal merger target for the company.
BitGift Divesture & Dividend
As MONI explores this reverse merger, the company has entered into an LOI with Silo Wellness Inc.(CSE: SILO) (OTCQB: SILFF) – an Oregon-based psychedelics company dual listed on the Canadian exchange. According to their agreement, MONI will sell BitGift to the company for a sum of up to CAD $500,000.
This deal is beneficial for both parties since SILO can use BitGift to bypass the banking regulations it is subjected to as a psychedelics company. By removing BitGift from its books, MONI will also pave the way for its reverse merger. In this way, MONI appears to be moving its focus away from the crypto and FinTech sector, and moving towards more traditional business opportunities instead. As is, MONI plans on executing a definitive agreement within the next 30 days. Therefore investors can expect an announcement before May 26th regarding this deal.
If this deal closes, MONI’s reverse merger could follow soon after. But MONI shareholders will also benefit from the divestiture of BitGift since MONI will receive 5,050,505 common shares of SILO. SILO is currently trading at $.020 CAD and based on the 20-day VWAP this transaction was valued at CAD$100,000. Once the 6 month contractual hold expires on these shares, MONI will distribute shares of SILO as a dividend to its shareholders.
Later on, MONI may benefit from an additional CAD $400,000 contingent on specific revenue milestones for BitGift. This could be an additional tailwind for MONI if BitGift is able to meet expectations.
Why You Should Add MONI to Your Stock Watch List…
With MONI pursuing a reverse merger outside of the crypto and FinTech sector, the company has brought Frank Benedetto on as an advisor. Benedetto is well known as a consultant and advocate for Clean Vision Corp (OTCQB: CLNV). He also played an influential role in Cosmos Health Inc.’s (NASDAQ: COSM) legendary run up in November 2022.
Meanwhile, many expect the company to release more details regarding the reverse merger and its business plans. These updates could make MONI a stock to watch. As is, the company has no convertible notes and no plans for dilution according to the company’s management. The company also filed its Attorney Letter on May 1st – an important step towards its potential merger.
MONI Stock Financials
According to MONI’s 2022 annual report, its total assets total $2.1 million – the majority of which is attributable to its investments from acquisitions. As is, the company has only $502 cash on hand with $225 thousand in total liabilities – all of which are advances. The company did not report any revenue, but recorded a net loss of $98.6 thousand for the year – a 25% decrease YoY.
Media Sentiment
@benedetto_frank is confident that MONI is on track to secure its air charter merger now that its attorney letter has been filed
@nxtplse is looking forward to a cash infusion of up to $500 thousand in MONI thanks to this deal
Technical Analysis
MONI stock is currently trading in an upwards channel. The stock is testing the 200 MA and is trading below the 50 and 21 MAs. The stock has a hard resistance at the $.02 market and recently pulled back to the lower trend line after testing this resistance. If the 200 MA holds, that would be a bullish sign and investors could take a position on the rebound off of the trendline.
Looking at the indicators, the RSI has recalibrated and rests at 40 and the MACD is bearish but approaching a crossover. The 50 and 200 MA recently formed a golden cross, signaling a trend shift. If the stock is able to successfully break past the $.0196 resistance, the stock could retest its resistance at $.0299.
Fundamentally, MONI has a number of catalysts coming up which could bring volume to the stock. The company is expected to execute its divesture of BitGift before May 26th and is currently exploring its reverse merger with an established air charter company. Now that its attorney letter has been filed, the company’s path forward appears promising.
Although MONI may deserve a spot on your stock watch list, the stock has dropped with profit taking following its last two announcements. Therefore investors should be mindful of these pullbacks.
MONI Stock Forecast
While MONI has made notable progress, the company expects it will take 30 days to execute the LOI with SILO. This deal will be an important catalyst for investors to watch since many expect that progress on its reverse merger will follow soon after. In at least 7 months time, MONI may proceed to distribute the dividend of SILO shares which would be another catalyst for investors to watch.
Now that the company’s attorney letter has been filed with the OTC Markets, MONI appears on track to move forward with its reverse merger if an agreement is made. Given that the company has no convertible notes and its management has no plans for dilution, MONI could be a stock to place on your stock watch list.
If you have questions about MONI stock and where it could be heading next feel free to reach out to us in our free alerts room!
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