Newsmax Stock Soars 18.85% on $1.2B SEPA Deal

Newsmax's stock surged by 18.85% in pre-market trading on April 8, 2025, marking a significant rise in its share price. This dramatic increase comes as the company continues to navigate the evolving media landscape and capitalize on its connections to former President Donald Trump.

Newsmax's stock has been highly volatile since its initial public offering (IPO), which raised $75 million. The company's shares were priced at $10 during the IPO and have since experienced dramatic increases, demonstrating the stock's volatile nature. This volatility is partly attributed to the limited number of shares issued and its notable connections to former President Donald Trump.

The recent surge in Newsmax's stock price can be attributed to several factors, including a significant $1.2 billion standby equity purchase agreement (SEPA) with Yorkville Advisors. This agreement allows Newsmax to sell up to $1.2 billion of class B shares to Yorkville over a 24-month period, contingent on certain conditions. CEO Christopher Ruddy has stated that this agreement will bolster the company’s balance sheet and improve share liquidity. The flexibility offered by this arrangement is expected to assist Newsmax as it navigates the evolving media landscape.

Additionally, Newsmax's stock has been influenced by favorable earnings forecasts and increasing media influence. The company reported a 50% increase in first-quarter 2025 viewership, which has contributed to the rise in its share price. Despite the significant price movement, there are no medium or severe warning signs according to its stock metrics, which can be a positive indicator for investors.