- Retail traders jump on IT services company following successful merger…
- Warrant prices surge alongside stock…
There’s a new meme stock on the block and it’s taking off quickly.
Shares of Data Storage Corporation (NASDAQ: DTST) rose sharply today, popping more than 100% at the open.
The stock pared some of those gains later in the session but still closed 32.78% higher as retail traders set their sights on the IT services company following news of a successful merger.
As the share price surged, so did the warrant price.
$DTSTW rose 77.75% at the end of the trading session, showing traders are optimistic about the future of this stock.
Data Storage announced today it completed a merger of its subsidiary Data Storage FL, LLC with Flagship Solutions, LLC.
Following the merger, the combined company remains Flagship Solution, LLC with Flagship’s CEO Mark Wyllie remaining in that role and joining Data Storage’s Board of Directors.
“We are delighted to complete this merger following our recent follow-on public offering and uplisting to Nasdaq,” said DSC CEO Chuck Piluso. “This transaction significantly expands our service offering and should be highly synergistic with our existing IBM operations. We are now well positioned as a leading, one-stop provider of multi-cloud IT solution, with the ability to cross-sell solutions across our respective enterprise and middle-market customers.”
Wyllie said, “We are excited to join the Data Storage team, and believe the timing is ideal with many customers migrating to the IBM cloud. We expect this market to continue to grow as the IBM on-premise server market has only begun to transition to the cloud in the last few years. Through the merger, we now have access to additional resources and infrastructure that we believe will help us further accelerate our growth.”
Data Services Corporation went public in May with a public offering of 1.6 million units which included one share of common stock and one warrant to purchase the common stock at an exercise price of $7.425.
The company says it “provides infrastructure as a service (IaaS) for IBM Power Systems, IBM i, AIX and Linux users.”
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