What happened
Shares of Ideanomics (IDEX -3.23%) rallied this morning after the company said today that it's paying off some of its debt.
The tech stock spiked on the news, with shares climbing as much as 17.6%. The company gave up some of those gains later in the morning, and Ideanomics' share price was up by 8.3% as of 11:10 a.m. EST on Tuesday.
So what
The company said in a Securities and Exchange Commission filing today that it had entered into a payoff agreement with Advantech Capital Investment and "repaid in full all remaining obligations" from its June 28, 2019, amended and restated convertible-note purchase.
Image source: Getty Images.
Ideanomics said in the filing that the principal and interest totaling $14.5 million "has now been paid off" by the company.
Investors typically like to see companies reducing their debt obligations, so it's not surprising to see that Ideanomics shareholders were pleased with today's filing and pushed shares higher.
Now what
Ideanomics stock has been very volatile this year, with the most-recent notable price spike occurring earlier this month after the company's Tree Technologies subsidiary hired a new chief financial officer. While today's news was noteworthy, investors should tread lightly with this stock as some Ideanomics investors are eager to buy and sell this company on nearly any news -- noteworthy or otherwise.
