To establish itself as an emerging leader in the industry, SMC Entertainment Inc. (OTC: SMCE), is focused on acquiring high potential commercialized FinTech companies to add to its growing portfolio of products and services. SMCE’s recent acquisition of Genesis Financial Inc. has brought the company major financial growth and continues to show major potential in 2022. On January 6th, SMCE saw a 52% increase overnight as the company released its financial goals for the ongoing year. In light of this and a number of other catalysts, SMCE could be one of the FinTech stocks to watch in the upcoming quarters.
SMCE Stock News
As an integrated financial technology company with a full suite of digital financial service solutions, Genesis Financial Inc. operates in wealth management, tax, and accounting advisory services through Ballast Group and The Financial Link Group. Capitalizing on the company’s presence in the financial market, SMCE acquired Genesis for $45 million in order to successfully penetrate this lucrative industry.
Together, Ballast and Financial Link boast a combined gross revenue of almost $15.7 million and a derived EBIT of a little over $1 million. The acquisition has brought Genesis’ 120 financial consultants and advisors into SMCE – giving the company a presence in Australia as well. This acquisition is also expected to add significant revenue to SMCE’s top line and could more than double its shareholder base as a result – possibly making SMCE one of the best FinTech stocks to watch this quarter.
To facilitate further growth and raise funds, SMCE issued 20 million warrants and utilized all gross proceeds enable operations, capital management and further acquisitions. SMCE appears ready to put these funds to good use as it aggressively works towards global expansion through strategic acquisitions in both the US and Australia. Currently, the company is already conducting preliminary due diligence on its potential acquisitions – which could indicate more updates are imminent.
Meanwhile, SMCE’s Australian operation is preparing to launch its new joint venture enterprise before the end of Q1 2022. This JV will have access to new funding and will easily capitalize on its ties to Australia’s lucrative accounting sector. However, to facilitate this expansion SMCE has retained Buckman, Buckman & Reid, Inc. – a registered broker and FINRA member – to assist the company in securing funds. By providing investment banking services, BB&R could help SMCE raise up to $15 million in funding for its working capital and future acquisitions.
To prepare for this, the company is currently focused on divesting from assets acquired by the former management. In doing that, SMCE cancelled over $600,000 in long-term debt and promised its shareholders it has no plans for dilution. Instead, SMCE is creating a preferred stock series that holds super-voting rights to incentivize its current management team while preserving common stock shares for capital funding.
Additionally, SMCE announced had previously announced its plans for an upcoming share reduction. The company has already reached out to owners of restricted shares to negotiate a 270 million to 293 million share reduction and has been seeking legal avenues to pursue the share reduction.
The company is already delivering on its share reduction promises. As of the time of this writing, SMCE has an AS of 1.45 billion and an updated OS of 854 million – of which 681 million are restricted and only 173 million are unrestricted. While investors are bullish on SMCE’s efforts, they are anticipating further share reduction will take place in the coming weeks. Given its low float of 123 million, these reductions could prompt a massive run sooner than expected.
The company has also been in negotiations with Spectrum Entertainment LLC to rescind its acquisition and seek $145 thousand in repayment for fees paid by SMCE during the process. SMCE is also seeking the return and cancellation of 40 million common shares issued to Spectrum members under the company’s former CEO. In November, the company filed a Uniform Commercial Code with its demands and if Spectrum proves uncooperative, SMCE “will explore other options including but not limited to seizing and selling off Spectrum’s equipment to recover what’s owed to the Company plus additional costs.”
However, according to the company’s latest report, SMCE has only $300,000 in assets and $450,287 in notes payable, and is operating at a loss. However, this could soon change with its entrance into the Australian wealth management industry – considering that the industry has 25 thousand financial advisors managing 2.2 million investors and generates roughly $3.9 billion in annual fees. SMCE’s acquisition of Genesis has positioned the company to capitalize on the more than 10 million Australians who are currently underserved by this industry.
To prepare for these expansions, SMCE intends to uplist to a more senior exchange in the near future. SMCE is already taking steps towards as it recently hired BF Borgers CPA PC to audit the company’s financial statements for 2019 and 2020. In addition, the company is also Anthony L.G., PLLC – a respected corporate law firm with 28 years of experience in small and mid-cap companies – to assist in the transition process.
These rapid changes are largely due to SMCE’s management which includes Warwick Kerridge as Executive Director. Notably, Kerridge represents the Australian government delegations in the banking and stock brokerage sector. Given his deep insight into this industry, Kerridge is well positioned to help guide SMCE to success in its Australian operations.
Media Sentiment
@cdntradegrljenn is bullish SMCE could see major growth as the company follows through with its share reduction promises.
Technical Analysis
Currently, SMCE is trading at $.0105 with a support at .0084. The stock is showing a primary resistance near .013 and a secondary resistance at .0165. Meanwhile accumulation has been trending upwards and the RSI is at 44. In addition, the MACD is on a recent bullish crossover.
Given these indicators, SMCE stock could be among the best fintech stocks to invest in ahead of its catalysts. With accumulation and MACD picking up, investors are securing positions on the stock at its current cheap PPS. In light of this, now could be a good entry point for investors bullish on SMCE and its ongoing share reduction.
SMCE Stock Forecast
By acquiring under-capitalized operations and other quality service providers, SMCE could be well on its way to deliver on its plans and uplist to NASDAQ. Given its highly experienced team and revenue producing acquisition, SMCE is quickly climbing up investors’ watchlist of FinTech stocks with great potential.
With its acquisition of Genesis and plans for a joint venture this quarter, SMCE could bring significant financial growth to the company in 2022 – driving its PPS higher. Considering its low market cap of $9.8 million and the revenue produced by its acquisition, SMCE could be severely undervalued. With this in mind, investors are bullish that the company’s upcoming acquisitions could soon reflect its true potential and drive the PPS to November’s high of $.016 – making it one of the best emerging fintech stocks
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