MicroAlgo Inc. (MLGO) stock skyrocketed 455% on Monday after the company revealed plans to raise $20 million through a new share issuance. The news comes after a period of high volatility for MLGO stock, which hit a low of $2.50 last week. On Monday, it soared to an intraday high of $15.34 before closing at $13.99. Notably, Monday’s rally pushed MicroAlgo’s market capitalization to more than five times its Friday closing value, reaching $139.52 million by the session’s end. Despite the gains, MLGO’s stock is still 85% down over the last 12 months.
MicroAlgo Issues New Shares to Settle Debt
MicroAlgo announced plans to issue new shares at $0.80 each. The decision follows a notice from creditors under a $20 million convertible bond agreement signed on October 7, 2024.
The share issuance is part of MicroAlgo’s strategy to meet its debt repayment obligations under the bond terms. As outlined in the agreement, the bonds can be converted into common shares at a price equal to 70% of the lowest closing market price over the past 60 trading days before the conversion request.
MicroAlgo Boosts Quantum Computing Efficiency
MicroAlgo specializes in algorithm-driven solutions, including artificial intelligence (AI), data processing, and optimization technologies. It focuses on developing advanced computing models to enhance efficiency across various industries.
Earlier this month, MicroAlgo introduced improvements to the Grover quantum search algorithm, refining quantum circuit design to minimize qubit errors and enhance system reliability. These upgrades aim to support industries that handle vast data, enabling quicker and more precise information processing.
By settling its debt, the company aims to strengthen its financial footing while leveraging advancements in quantum computing to drive its future expansion. However, it recognizes hurdles in hardware development and the necessity for wider algorithmic integration to accelerate mainstream adoption of its quantum technology.
Year-to-date, MLGO stock has gained 272% in trading.
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