In a significant transaction pre-market on Monday, Peter Derycz, the former Chief Executive Officer and Chairman of Research Solutions, Inc., sold 2,000,000 shares of the company's common stock. This sale represented the majority of Derycz's holdings in the company. The shares were acquired by a group of institutional investors.
The transaction comes as the stock trades near its 52-week high of $3.78, having delivered an impressive 40% return over the past six months. According to InvestingPro, the company's market capitalization stands at approximately $109 million.
The sale by Mr. Derycz is seen as a strategic move that benefits the company by diversifying its shareholder base. It is expected to increase the public float of Research Solutions' stock and alleviate concerns over a potential prolonged sell-off by a single shareholder.
By dispersing the shares among a broader range of institutional holders, the company aims to stabilize its stock ownership and enhance market liquidity. The company has shown strong fundamentals with 19.26% revenue growth in the last twelve months. InvestingPro subscribers can access 14 additional key insights about the company's financial health and valuation metrics.
Research Solutions, a Nevada-incorporated company listed on The Nasdaq Stock Market LLC under the ticker NASDAQ:RSSS, operates in the business services sector. The firm has not disclosed the specific institutions that purchased the block of shares.
This move comes as part of a broader effort by Research Solutions to realign its shareholder structure. The company's commitment to maintaining a diverse and balanced investment base is reflected in this transaction.
The company's total revenue increased by 20%, reaching $12 million, while net income significantly rose to $669,000, a turnaround from a previous loss. The platform revenue, primarily driven by the acquisition of Syte, surged by 67% to $4.3 million, and annual recurring revenue (ARR) saw a 60% growth, reaching $17.6 million.
The company also announced the appointment of Sefton Cohen as its new Chief Revenue Officer. Cohen, with his extensive background in scaling SaaS companies, is expected to further the adoption of Research Solutions' advanced capabilities across various sectors. His role will focus on global revenue operations and strategic partnerships.
In addition to these developments, the company highlighted a record gross margin of 47.9%, with the platform business gross margin standing at an impressive 87.4%. Despite facing some challenges, Research Solutions maintains a strong sales pipeline and continues its ongoing development of SaaS and AI capabilities.
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