SurgePays, Inc. (NASDAQ:SURG) shares surged 59.76% to $0.36 in after-hours trading Wednesday following the announcement of the formation of Redline Wireless Group, LLC, a Wyoming-based joint venture targeting prepaid wireless distribution.
Joint Venture Expands Distribution Reach
SurgePays, a Tennessee-based wireless and fintech company, said it will own a 51% controlling stake in Redline. An unnamed major wireless master distributor will hold the remaining 49% noncontrolling stake.
Redline brings together SurgePays’ Mobile Virtual Network Operator infrastructure, including its LinkUp Mobile brand, billing systems and operations center, with the partner’s network of more than 20,000 active independent prepaid wireless dealers across the country.
Chairman and CEO Brian Cox said, “We are pairing our full MVNO infrastructure with one of the largest independent dealer distribution footprints in the country, more than 20,000 active dealers already selling prepaid wireless every day.”
He added that both parties are targeting more than 1 million subscribers. Based on the company’s conservative internal projections, Redline is expected to generate more revenue and profit than any previous SurgePays subsidiary by its 18th month of operations.
What You Should Know
In July, SurgePays amended its wholesale agreement with AT&T Inc. (NYSE:T), eliminating a $50 million minimum-spend requirement and prompting the company to project an $8.5 million second-quarter gain.
Trading Metrics, Technical Analysis
SurgePays has a market capitalization of $5.62 million and 25.12 million shares outstanding. The stock has traded between a 52-week high of $3.22 and a 52-week low of $0.20.
The Relative Strength Index (RSI) of SURG stands at 32.28.
The stock has fallen 92.38% over the past 12 months.
Currently, SURG is positioned close to its 52-week low.
Price Action: The stock closed the regular session on Wednesday at $0.22, up 6.23%, according to Benzinga Pro.
Benzinga’s Edge Stock Rankings indicate that SURG has a negative price trend across all time frames.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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