Aspire Biopharma faces potential Nasdaq delisting after compliance shortfall
Investing.com - B.Riley has initiated coverage on FG Nexus Inc (NASDAQ:FGNX) with a Buy rating and a price target of $8.00, representing significant upside from the current trading price of $3.82. According to InvestingPro data, analysts maintain a consensus Buy recommendation with a higher price target of $12.00.
The research firm describes FG Nexus as a Digital Asset Trust Company (DATCO) that aims to secure a 10% stake in the Ethereum network, while maintaining two legacy businesses in merchant banking and cinema/venue technical services. InvestingPro analysis shows the company maintains healthy liquidity with a current ratio of 1.71, though its overall financial health score is currently rated as weak.
B.Riley analyst Fedor Shabalin believes institutional partnerships, management experience, and yield strategies will support FG Nexus in accumulating Ethereum (ETH) in an accretive manner.
The firm forecasts that FG Nexus will expand its premium to 1.3x modified Net Asset Value (mNAV) over the next 12 months, suggesting potential for share price appreciation beyond the underlying asset value.
According to B.Riley’s projections, FG Nexus is expected to increase its Ethereum holdings to 214,000 coins by year-end 2026, representing significant growth in its digital asset portfolio.
In other recent news, FG Nexus Inc. has registered a resale of shares stemming from a $200 million private placement. The company filed a resale registration statement to register 40 million shares of its common stock, which are linked to pre-funded warrants. As of the latest update, warrants for 3,473,189 shares remain unexercised, while FG Nexus has sold 2,141,658 shares of common stock through its $5 billion at-the-market offering. Additionally, Fundamental Global Inc., soon to be known as FG Nexus Inc., has filed a $5 billion shelf registration with the Securities and Exchange Commission. This filing is intended to support the company’s strategy for acquiring ethereum, and includes a $4 billion at-the-market offering prospectus. It is important to note that this shelf registration has not yet been declared effective by the SEC, meaning securities cannot be sold until it is. These developments reflect the company’s ongoing financial and strategic initiatives.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.