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XCel Brands Stock Soars 66% After-Hours: What's Driving the Surge?
XCel Brands Inc. (NASDAQ:XELB) saw its shares rise 66.47% to $2.88 during after-hours trading on Thursday, after announcing a settlement agreement and equity transfer deal with the Securities and Exchange Commission.
Check out the current price of XELB stock here.
Settlement Agreement Details
In an 8-K filing on Thursday, XCel Brands revealed it reached a settlement agreement with IM Topco LLC, IMWHP LLC, and IMWHP2 LLC.
The deal includes a capital appreciation right, which entitles New York-based company to 15% of any net consideration exceeding $46 million from IM Topco capital transactions until September 1, 2032.
Equity Transfer Transaction
Under the membership interest transfer agreement, XCel agreed to transfer its full 17.5% equity stake in IM Topco to IMWHP2 LLC. The transfer was completed on Wednesday, as stated in the filing signed by Chief Financial Officer James F. Haran.
Subsidiary Released From Obligations
Xcel’s subsidiary, Xcel-CT MFG LLC, was relieved from any additional responsibility under specific terms of a license termination agreement with IM Topco as part of a settlement.
Stock Performance
The media and brand management company saw a 76.96% loss over the past year, but it gained 17.69% in the past month. According to Benzinga Pro data, XELB closed at $1.73 on Thursday, reflecting a 1.14% increase during regular trading.
With a market capitalization of $8.24 million, the stock has ranged between $0.95 and $8.40 over the past 52 weeks. It averages a daily trading volume of 73,020 shares.
Benzinga’s Edge Stock Rankings indicate that XELB is experiencing long-term consolidation along with medium and short-term upward movement. Track the performance of other players in this segment.
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Photo Courtesy: Gorodenkoff on Shutterstock.com
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.