Shares of Newsmax are rising 8% due to a $1.2 billion equity purchase agreement

From Yahoo Finance: 2025-04-07 12:53:00

Shares of Newsmax (NYSE: NMAX) surged 8% following a $1.2 billion standby equity purchase agreement with Yorkville Advisors. The company went public with a $75 million IPO and saw a 2,230% increase in stock value initially. The SEPA allows Newsmax to access capital over 24 months to support growth. CEO Christopher Ruddy highlighted the benefits of the agreement for future opportunities. Newsmax can terminate the SEPA with notice and Yorkville is restricted from short sales. Despite high valuation and meme stock status, the company is not yet profitable, prompting caution from investors. The Motley Fool Stock Advisor team identified Newsmax as a stock to avoid, recommending other top-performing stocks for potential high returns. Joining Stock Advisor gives access to the latest top 10 list for investment opportunities.



Read more at Yahoo Finance: Why Shares of Newsmax Are Rising Today