A major player in the OTC market, Majic Wheels Corp. (OTC: MJWL) has been working to become one of the major disruptors in the FinTech and software development industry. Originally a development stage company operating in the waste management business, MJWL made the move to FinTech back in June through its acquisition of CGCX – the world’s first insured crypto platform. Not long after this pivot, MJWL started its first run and reached a 52 week high of $.265 in July of 2021. Recently, MJWL stock witnessed a 42% surge after announcing the start of trading CGCX tokens in India. While it dipped with profit-taking, MJWL stock has the potential to be a profitable long-term hoold
MJWL Stock News
To date, MJWL’s major asset remains its acquisition of the cryptocurrency exchange Calfin Global Crypto Exchange (CGCX). Providing a crypto exchange platform, smart contracts, merchant solutions, and ICOs under a single platform, CGCX set itself apart from other exchanges early on by insuring all tokens stored on the exchange wallets against cyber-attacks and hacking. With a mission to become a global leader in crypto exchange and blockchain solutions, the platform is in constant development of software solutions for the broader blockchain industry. It now offers not just the hybrid crypto exchange, but custody solutions and mining as well.
Upon this acquisition, MJWL saw major financial growth. According to the company’s latest quarterly filings, MJWL reported an impressive $6.28 million in Q3 revenues along with $173 million in assets. The company also achieved net income of $1,674,225 – a massive increase from a net loss of $16,063 in the previous quarter. As the company continues to meet and exceed projections, both MJWL’s CEO David Chong and CGCX’s Co-Founder Vin Menon are bullish this growth trend will continue into 2022.
To facilitate this growth, MJWL signed an agreement with Investment Bank Donald Capital, LLC – a FINRA Member Investment Bank servicing clients around the globe. The agreement is meant to provide MJWL with merger and acquisition advice as well as assist in raising capital through a private offering of up to $50,000,000. The company believes this agreement could create leverage for growing shareholder value as Chong shared his hopes for the future saying: “Institutional backing is essential to a successful up list and we feel this step represents another milestone in the NASDAQ direction”.
This clearly increased the scope and size of the company’s acquisitions strategy given that MJWL recently acquired a majority interest in Bamboo Wellness Holdings. As a subsidiary of Malayan Holdings Limited – a boutique investment company in the areas of insurance services, Bamboo wellness utilizes blockchain, AI and machine learning to reduce risk and create a holistic healthcare ecosystem. Given that this acquisition has been in the works since Q3 2021, Chong is looking forward to “supporting the company’s expansion with the wide reach of various strategic markets in MJWL’s global network.”
Upon finalizing this agreement, MJWL acquired 26% of Bamboo’s enlarged capital on a fully diluted basis at a transaction valued at $126 million – funded partly by cash and new shares of MJWL. Pursuant to the terms of the acquisition, MJWL holds an option to exercise a First Right of Refusal to increase the company’s interest in Bamboo to a majority of 51%.
This partnership is looking promising for both companies. In fact, Bamboo’s CEO Vincent Kwo is bullish that being a part of MJWL will strengthen Bamboo’s position as a “leading insure-tech company, enhances our ability to deliver compelling solutions for our clientele and deepens our access to long-term strategic capital”.
To prepare for growth this year, the company recently announced the appointment of a new board of directors. With over 30 years of fund management experience, Executive Director Sathyanandham Anguswami has contributed immensely to CGCX’s growth and has the skillset to capitalize on MJWL’s planned acquisitions. Meanwhile, as CFO, Sarma Vempati has the knowledge and skill to develop financial strategies that would help accelerate business expansion and profitable growth. Given his wide experience as an investor analyst, Vempati has a history of working with growing companies and also brings a strong background in audit and financial control to the table.
In light of this strategic management, the company could be well-positioned to deliver on its uplisting plans as well as establish MJWL as a DeFi disruptor within the industry. In light of this, MJWL signed an agreement with the NASDAQ listed company Sequire (NASDAQ: SRAX). SRAX is known for tracking investors’ behaviors and trends as well as using these insights to engage current and potential investors across different marketing channels. In light of this, the partnership could prove successful for MJWL as the company continues to expand and acquire more companies within the industry to establish itself as a major player.
Ahead of its hotly anticipated Q4 report, investors are waiting for an update on MJWL’s LOI to acquire a majority interest in the crypto exchange and trading platform – PCEX – through its fully owned subsidiary CGCX. Signed in October, MJWL is looking for an entrance into India’s growing crypto market through PCEX – the first crypto broker in India to introduce the B2B Franchise Model to the cryptocurrency market.
This acquisition could be very valuable to the company if finalized considering that PCEX has created a network consisting of over 250 franchises and more than 40 satellite offices across India. Its unique approach allows PCEX to meet the needs of India’s entrepreneurs and businesses hoping to establish a footprint in the crypto space. In light of this, MJWL’s CEO is confident that “The combination of Majic’s CGCX expertise and PCEX novel approach and scalable model will further Majic’s ambition to firmly establish itself as a Fintech & Technology leader in India.”
Investors are expecting positive Q4 results from the company reflecting its continued growth since the CGCX acquisition and a completed audit of the company’s financials. With this in mind, now could be a good entry point ahead of MJWL’s updates.
*Updated March 9th
It appears that MJWL’s acquisition of PCEX is being finalized as MJWL announced its plans to venture into the Indian market by offering CGCX tokens through PCEX. The utility token provides discounts on trading fees and gives access to a smart contract platform.
It is worth noting that India is one of the fastest growing crypto markets – with an increase of 641% in 2021. Over 20 million Indians are reportedly investing in crypto – holding a massive $5 billion in cryptocurrencies.
Capitalizing on this, MJWL’s partnership with PCEX will allow the company to offer its tokens in over 250 PCEX offices across India. This partnership is expected to increase MJWL’s market share as it provides its services to this rapidly growing market. Excited about the profitable partnership, PCEX’s CEO Sandeep Phogat commented that “the cryptocurrency market has been growing exponentially, making it one of the fastest-growing industries in history”.
CGCX tokens can be purchased using the local currency and could become a popular option among investors as the company expands across the country. At the same time, the company is capitalizing on recent cyber attacks by insuring investors’ crypto assets.
Attempting to raise awareness for the token, CGCX is in talks with a number of Bollywood celebrities and cricket players to endorse the token. In addition, the company plans to appeal to those who missed out on Bitcoin and Ethereum by introducing the token’s potential to reach similar heights.
In light of this, Anguswami is confident that “the combination of CGCX tokens and PCEX, will further strengthen CGCX’s position as a Fintech & Technology leader in India”. Anguswami also believes that “it will be a major catalyst pushing cryptocurrencies even higher in value over time”. The company has already announced that CGCX tokens will begin trading in India through PCEX leading MJWL’s CEO to comment that the company is “entering into a new era with this partnership”.
Despite uncertainty concerning India’s crypto bill, it appears that the government is moving towards acceptance. Recently, Finance Minister Nirmala Sitharaman announced a 30% tax on income from crypto transactions – signifying that the government will be factoring the asset into its own budget. Sitharaman also announced plans to introduce a central bank digital currency during the current financial year.
Recently MJWL was represented by Dr. Vin Menon – a serial blockchain entrepreneur and CGCX’s founder – for a CNBC panel discussion on fintech and crypto. During his speech, Menon announced that MJWL had just closed a major acquisition. Considering that MJWL’s website lists PCEX as a subsidiary, many investors are speculating that the acquisition has been finalized and will be announced soon. With this in mind, MJWL is set to have India’s largest crypto exchange as a subsidiary which could lead to significant profits for the company.
Investors are also waiting for the release of MJWL’s Q4 report. Chong announced that the company is expected to release its report in March with the Q1 report due 45 days after. Many investors are expecting significant financial growth for the company and depending on the results of the report a run up could follow.
Media Sentiment
@MattRiv2 is bullish on the potential of MJWL stock in light of its catalysts.
@shawonsarker84 shows that MJWL could be undervalued considering its financial growth following the CGCX acquisition
Technical Analysis
Currently at a dip, MJWL stock is trading at $.0338 with resistance at .0361. It shows a main support at .0330 and a secondary support at .0315. Accumulation is on an upward trend – meanwhile the MACD is bearish and the RSI is approaching oversold at 38.
The upward trend is a positive sign following MJWL’s venture into India’s crypto market. As the RSI drops towards oversold, this could be a good entry point for MJWL stock as it has the potential for a run-up on the acquisition’s announcement.
MJWL Stock Forecast
Considering MJWL’s recent venture in the Indian market, it is clear that the company’s management is serious about expansion. With significant financial growth already and more expected with the acquisition of PCEX – MJWL stock has the potential to be a profitable long-term investment. Moving into India’s crypto market as the country approaches legalization, MJWL has the potential to become a major player in this massive market.
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