Digiliti Money Halted On A T-12 After Urban FT Makes Bid

Digiliti Money Group Inc (NASDAQ: DGLT) just made a DryShips Inc. (NASDAQ: DRYS) -like move.

Back in 2016, shares of DryShips inexplicably soared from less than $5 per share to more than $100 per share for no company specific reason. The stock was then halted by the Nasdaq stock exchange under a "T12" halt code, which is a request for information from the company and is typically associated with unusual trading activity.

On Wednesday, Digiliti was halted under a similar "T12" code after gaining more than 400 percent in value in a few short hours. This time, there's an actual reason for such a big move.

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The nano-cap technology solutions and services provider to the financial services industry said Monday it may need to restate previously reported financial results and is actively reviewing strategic options including a Chapter 11 bankruptcy or a sale of the company.

Urban FT, a SaaS-based digital banking platform, said in a press release Wednesday morning it has made a bid to acquire the troubled Digiliti.

"The Board of Urban FT contacted the Digiliti Money chairman with a bona fide, all-cash purchase offer that would enable the company to continue to serve its customers and stave off potential bankruptcy proceedings," Urban FT said. "The acquisition, if accepted, would be funded, through Morgan Stanley, on behalf of Urban FT's principal investor."

The stock was halted at $1.05 per share.