Pineapple Financial (PAPL) stock has reached a new 52-week low, trading at $0.41, as investors navigate through a turbulent market environment. With a market capitalization of just $3.8 million and revenue of $2.54 million, the micro-cap company appears undervalued according to InvestingPro Fair Value analysis. This latest price level reflects a significant downturn from previous periods, with the company's stock experiencing a stark 1-year change, plummeting by -75.84%. The substantial drop in Pineapple Financial's stock value over the past year underscores the challenges faced by the firm in a landscape marked by economic uncertainty and shifting investor sentiment. Despite maintaining a strong gross profit margin of 99.9% and a healthy current ratio of 1.53, the company is quickly burning through cash - one of 13 key insights available on InvestingPro. As shareholders and potential investors consider the company's future prospects, the 52-week low serves as a critical indicator of its current market position and the steep decline it has endured over the past year.
In other recent news, Pineapple Financial has successfully secured approximately $1 million in a registered direct offering. This significant transaction, which is expected to close around mid-November, is part of an agreement with an institutional investor. The company anticipates the gross proceeds from this offering to total $1 million before deducting placement agent fees and estimated offering expenses. D. Boral (OTC:BOALY) Capital LLC is serving as the exclusive placement agent for this offering.
In addition, Pineapple Financial recently experienced changes in its board with the immediate resignation of board member Christa Mitchell, who will continue her role as Chief Strategy Officer. The company has also converted a portion of its debt into equity, issuing 64,922 new common shares to Brown Stone Capital Ltd, which has increased its total issued and outstanding common shares to 7,883,859.
Furthermore, EF Hutton has initiated coverage of Pineapple Financial with a Buy rating, citing the firm's strategic expansion into non-mortgage insurance products and the formation of an internal sales team. The company has also expanded its affiliate network in Ontario, adding six new mortgage brokerages in line with its growth strategy. These recent developments highlight Pineapple Financial's ongoing efforts to boost revenue and volume.
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