Monday’s announcement comes after the company closed its acquisition of privately held CBM BioPharma in October.
Spherix (NASDAQ:SPEX) announced on Monday (November 26) that it has secured a 25 percent stake in Mellow Scooters, providing an opportunity to its shareholders in electric scooters and the bike sharing industry.
Mellow lets entrepreneurs own and operate a fleet of electric scooters and dockless bicycles to generate revenue with the firm using its own proprietary software to provide an alternative to traditional transit systems.
It has to be noted that Spherix, a company involved in diversified business portfolio, is on the verge of closing its acquisition of privately-held CBM BioPharma in a move that was announced in October.
“Leading up to our acquisition of CBM BioPharma, Spherix had been incubating Mellow and we are proud of its advancements. Mellow is uniquely positioned to take advantage of a gap in the rapidly growing electric scooter and bike sharing business,” Anthony Hayes, CEO of Spherix, said in the release.
While Spherix has been transitioning its focus to be a technology development company, its efforts are also on monetizing its patents, patterning and supporting various product innovations.
Chris Hoyle, CEO of Mellow, said in the release the company has examined transportation systems and believes it has an opportunity make an impact in this space.
“The core of Mellow’s business, enabling local economies to keep revenue generated through transit, is an equitable approach designed to provide a safer, more stable environment,” Hoyle said. “Instead of giving a distant business control of a city’s transit, cities and small businesses can elect to run their own Mellow operation and harness revenue from last mile transit.”
Mellow’s users are able to generate revenues by adding a bike or a scooter to theplatform and make it available for riders to rent and use. For potential riders, one can download the company’s app and rent out a bike for short or long term use.
Following the announcement, shares of Spherix were up 10.23 percent and closed the trading session on Monday at US$0.97 and reached a high of US$1.40 and a low of US$0.96.. The stock had a trading volume of 12.63 million shares traded throughout the day.
Spherix has a “Buy” ranking on TradingView with 14 verticals in favor, nine in neutral and five against.
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Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.