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Why Triterras Stock Soared Today

By Evan Niu, CFA - Dec 21, 2020 at 1:25PM

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CEO Srinivas Koneru is planning to buy more shares in the open market after giving an investors an update tomorrow.

What happened

Shares of Triterras ( TRIT 3.25% ) have soared today, up by 14% as of 12:20 p.m. EST, after the company announced that CEO Srinivas Koneru is planning to purchase more shares in the open market. Triterras also moved a previously announced conference call to tomorrow.

So what

Triterras shares tanked last week after it disclosed that a creditor was pushing an important Triterras customer, Rhodium Resources, to restructure. Both Triterras and Rhodium were founded by Koneru, and Rhodium has been "instrumental" in launching Triterras' Kratos service, a blockchain-based digital platform for trading commodities and securing financing. Triterras went public in November after merging with special-purpose acquisition company (SPAC) Netfin.

An illustration of a blockchain connecting things

Image source: Getty Images.

In a statement, Koneru commented:

I believe that our fundamental business remains strong and our prospects remain excellent. Our recent 6K on our customer Rhodium clearly caused some concerns among investors. We expect that any fluctuations in Rhodium's business will be replaced by other traders on the platform. I believe that the current trading price of our stock is significantly undervalued and intend to purchase shares as soon as the trading window opens.

Now what

The fintech company had previously scheduled a conference call to provide investors with a business update on Jan. 5, but has now moved the date of that call to tomorrow morning at 10 a.m. EST. Triterras will include a presentation and discuss the company's outlook for the fiscal third quarter.

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Triterras, Inc. Stock Quote
Triterras, Inc.
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