On August 15, Stratos Renewables Corporation’s (OTC: SRNW) CEO George Sharp dropped a series of revelations regarding his shell company which could be signaling that the much-awaited reverse merger may be on the horizon. These revelations included a sizable share cancellation, an equity investment from his other company Forwardly, Inc. (OTC: FORW), and most importantly an indication that the company intends to continue corporate operations ahead of an acquisition. As is, Sharp is tidying up his shell company ahead of the reverse merger which is why going long on SRNW stock could prove to be a lucrative decision.
SRNW Stock News
Recently the Nevada district court for Clark County approved SRNW’s 38.6 million share cancellation. As a result, 46% of the company’s shares have been canceled which means that its float has likely been drastically reduced to nearly 38 million shares. Given its low float, the stock could be extremely appealing to investors ahead of the reverse merger.
Another reason why the reverse merger could be announced soon is that Sharp’s other company FORW invested $400 thousand in exchange for 2 million units each of which includes a warrant to buy 1 share for $.3 and expires in 2024 in addition to a warrant to buy 1 share at $.5 that expires in 2026. SRNW intends to use these funds to pay off its legacy debt and continue operating until it closes the reverse merger. With this in mind, more information will likely be revealed when the company’s S-1 registration statement is published.
Based on these revelations, it appears that the reverse merger could be right around the corner since the share cancellation will entice investors while the $400 thousand investment will allow the company to continue operating until the deal is finalized. Considering Sharp’s history of closing profitable reverse mergers for his shell companies, SRNW stock may be one to watch closely this year.
@ChaseMacTrades is bullish on SRNW’s share cancellation.
@PikachOTC believes that the reverse merger could be right around the corner.
SRNW stock is in a neutral trend with the stock trading in a sideways channel between $0.28, and $0.36. Looking at the indicators, the stock is currently above the 200, 50, and 21 MAs which is a bullish sign. Meanwhile, the RSI is neutral at 46 and the MACD recently turned bearish.
As for the fundamentals, SRNW’s main catalyst is the completion of its reverse merger. With the company successfully canceling 38.6 million shares, its S-1 registration statement may be published soon which would indicate that the merger is close to being finalized. That said, investors could wait for the stock to retest its $.28 support before going long ahead of more updates from the company.
SRNW Stock Forecast
With the company completing its share cancellation, it appears to be on track to finalize its anticipated reverse merger soon. Following this step, the company’s S-1 registration statement could be published soon – laying the ground for the merger’s completion. With this in mind, Sharp has a history of securing profitable mergers for his shell companies which makes SRNW stock one to watch closely this year in anticipation of its reverse merger.
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