Momentous Entertainment Group Inc (OTCMKTS:MMEG) shares jumped 160% on Tuesday to $0.00260 but sank 22.31% in after-hours trading. Shares have been trading in a 52-week range of $0.00 to $1.05. The company has a market cap of $694,564.00 at 267.14 million shares outstanding.
Earlier this week, Momentous Entertainment Group announced that it has negotiated all points of the acquisition documents with the sellers of Poolworks and Momentous has set the closing date at January 2, 2017. The binding agreement was executed in November to acquire Poolworks Germany Ltd, which is one of the largest social media companies in Europe, for $10 million in preferred stock.
“The Poolworks acquisition will bring the necessary asset value to Momentous to begin to consider the process of a possible uplisting to the NASDAQ or the New York Stock Exchange,” cited Momentous Entertainment Group CEO Kurt Neubauer.
“Even though we would have liked to close the transaction this year, I don’t see how taking a few extra days to close in early January 2017 is an issue and considering Microsoft’s anticipated purchase of LinkedIn valuated at $247 per user and FaceBook’s valuation of $200 per user; acquiring Poolworks for $1 per user affords the opportunity for substantial growth and makes the wait more acceptable,” he added.
For now, the company is committed to enhancing and relaunching the web and mobile platforms to increase user engagement and retention, expand the video features with an OTT streaming service and adding e-commerce capabilities to attract a younger audience and more revenue. The executive team continues to maintain a strong focus on information security for its users as well.
Poolworks has social media companies studiVZ and meinVZ. studiVZ and meinVZ have more than 10 million registered users and over 45 million page impressions per month, largely in the German-speaking countries of Germany, Switzerland and Austria.
Momentous Entertainment Group is a media company that operates in segments including content, distribution, live events and direct marketing. The content segment has a recording division, and a film and television division while the distribution segment will focus on the distribution of content through cable, radio, television and streaming distribution outlets.
The live entertainment segment will focus on highlighting contracted artists, their content and the creation of additional content that cost has been cover by the consumers, and the marketing segment will directly sell intellectual property to consumers. The recording division offers an album to the faith market entitled the Greatest Story Ever Sung with music from Susan Olmon and the late Roger Clark, and narration of the story of the life of Jesus by Stephen Baldwin. Momentous Entertainment Group also intends to sponsor live concerts and other musical events.