Ever since Facebook’s rebrand to Meta, tech penny stocks such as NextPlay Technologies, Inc. (NASDAQ: NXTP) have been on investors’ radar. As a tech solutions company, NXTP utilizes AI and blockchain across a range of services including games, in-game advertising, crypto-banking, and travel booking solutions. To position itself for growth, the company has been utilizing its technology and capabilities to capitalize on the growing the metaverse industry. Currently trading at a dip, NXTP is one of the tech penny stocks showing major potential in 2022.
NXTP Stock News
Last November, NXTP caught investors’ attention when it announced its entry into a purchase agreement to sell a total of 18.98 million of its common stock shares and warrants in order to purchase an average of 14.24 million common stock shares from several institutional investors. Gross proceeds from this direct offering are projected to be $30 million – before deducting agent fees and other expenses. Upon closing, NXTP intends to utilize all net proceeds to settle the company’s debt as well as provide working capital for expansions and general corporate purposes. Successful, the offering closed only two days after it was initially announced.
NXTP’s Chief Technology Officer – Mark Vange – has assured investors of the company’s efforts to seek “partnerships with technology minded financial institutions and compliance minded crypto infrastructure providers”. This is all part of its plan to become an emerging global leader in the Fintech sphere.
To deliver on its growth promises, NXTP has been on the lookout for partners that will facilitate its new suite of digital stable coins – which will cover a broad array of assets including a variety of fiat currencies across a group of crypto chains. To achieve this, the company recently acquired new technologies from Token IQ Inc. – a leading SaaS blockchain technology company where NXTP can effectively build its suite. Upon building, the company intends to utilize technology from NextBank – an emerging banking partner and NXTP’s subsidiary. Because NextBank is known for managing assets with cutting edge tools and security, investors are bullish on the growth potential of NXTP’s suite of digital coins.
Aside from its ventures with NextBank, the company is also venturing into the FinTech sphere through its subsidiary – Longroot – which is known for creating regulated cryptocurrencies. In light of this, NXTP’s licensed Longroot digital token offering platform will serve as the financial advisor and underwriter for Ample Health’s proposed security token offering (STO). Longroot will be responsible for structuring the offering and raising the initial capital to fund the STO.
Given that Ample Health is an emerging company operating from seed to sale in the billion dollar cannabis industry, NXTP’s Chairman – Todd Bonner – believes this partnership is a “tremendous opportunity for NXTP to represent a major client in the fast-growing global cannabis space”. Ample Health’s CEO Akira Wongwan is bullish this partnership will enable “a highly-successful STO” and facilitate the launch of the company’s global cannabis platform.” Wogman chose Longroot to lead the STO due to its “experienced management, well-established presence in the digital offering marketplace, as well as its Thai federal government licensing and oversight.”
Under the terms of the partnership, Longroot will develop needed registration statements for all of Ample’s relevant jurisdictions. It intends to lead Ample through the entire regulatory approval process and then assist in the pricing and launching the STO through the Longroot portal. Ample Health intends to utilize all proceeds from its STO to facilitate its development and global expansion. Bonner believes this partnership will represent “the first of many successful STOs for Longroot that are currently advanced in NXTP’s pipeline.” The proposed offering targets to raise between $100-250 million and is expected to close by Q3 2022.
To further establish its presence in the space, NXTP had previously entered into a joint venture partnership with the leading virtual solutions company – Soma Innovation Lab – and the pioneering white label company for NFTs solutions – NFT Pro – to launch a digital design and innovation lab – NextPlay X Soma Labs. NextPlay X Soma Labs is created with the aim of developing NFTs, social games as well as metaverse virtual worlds for several prominent brands and creators.
Through this joint venture, the companies intend to leverage their combined experience in extended reality solutions, NFT platforms, as well as game developing and crypto banking. Currently, NXTP is focused on developing Nextplay X Soma Labs by creating main concepts, characters, assets and also marketplaces for NFT smart contracts. By doing this, NXTP could be well-positioned to capitalize on different aspects of the growing metaverse industry.
This progress is a bullish sign especially because company insiders like Directors Yoshihiro Obata and Farooq Moosa bought shares at the end of January at $1.06.
Moreover, the company previously obtained conditional approval from the Labuan Financial Services Authority (Labuan FSA) for its general insurance and reinsurance application license. As a jurisdiction specially for insurance intermediaries, Labuan FSA has worked with over 200 intermediaries from different regions including the US, Africa and Asia.
With this license, NXTP’s fintech division is well-positioned to initiate its insurance operations and offer a variety of products such as block-chain bank deposit and travel insurance. This license could also benefit NXTP’s subsidiary – NextBank by enabling bigger deposits on account of its licensed insurance coverage.
The re-insurance licensing will enable NXTP to add reinsurance operations to its portfolio and offer tokenized insurance linked securities (ILS) to investors. Investors are bullish on these new revenue streams given that they are executed by a team of experts led by Bonner, who is well-known for co-founding Pacific Century Insurance – a company that insured an $888 million transaction.
In terms of its financials, NXTP seems poised for growth. According to its latest Q3 financial records, the company shows revenues of $4.2 million- a 59% increase from the previous quarter – as well as $21.4 million in cash on hand – a massive 140% over the same period. The company also reported $2.2 million in gross profits and over $121 million in assets. In light of this financial growth and the company’s metaverse ventures, NXTP could be well-positioned to become one of the best tech penny stocks in the upcoming quarters.
Media Sentiment
@RadioSilentplay is excited to see whether the company’s latest metaverse news will position NXTP as one of the best tech penny stocks in 2022.
Technical Analysis
Currently NXTP is trading at $.6172 with a support near .5722. The stock shows a primary resistance around .6432 as well as a secondary resistance at .8009. Accumulation is seeing a slight downward trend. Meanwhile, the MACD is on a recent bullish crossover and the RSI is at 50 and continues to trend upwards.
These indicators show that NXTP has been losing some of tis momentum over the past few months. However, following announcements of its upcoming metaverse initiatives, NXTP has been gradually regaining its momentum and could be positioning itself as one of the best tech penny stocks. As NXTP starts delivering on its expansion plans, the PPS might retest October’s high at $3.32.
NXTP Stock Forecast
With its unique digital ecosystem of in-game ad-tech, crypto-banking and fintech, NXTP is one of the tech penny stocks to watch in the upcoming quarters. The company is expected to gain much more momentum this year as it plans on releasing its insurance policies and upcoming metaverse initiatives. Given that it is currently trading at a dip, investors could find now a good entry point to secure positions on NXTP as it capitalizes on its potential in this unique space.
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