Hall of Fame Resort & Entertainment’s stock rockets as SI media deal overshadows new ‘going concern’ language

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Shares of Hall of Fame Resort & Entertainment Co. more than doubled (up 105.1%) on very heavy volume Thursday, after the football-focused entertainment company’s announcement of a media deal with Sports Illustrated Studios overshadowed the “going concern” language added to the company’s quarterly filing. Trading volume exploded to 73.2 million shares, enough to make the stock the most actively traded on the Nasdaq exchange, and multiples of the full-day average of around 145,500 shares. The company said that, in partnership with WaV and Sports Illustrated Studios, it will produce an original docuseries centered on the NFL Alumni Academy, the NFL Alumni Association’s player development academy. Separately, the company disclosed in its 10-Q filing for the third quarter that given “recurring losses and negative cash flows, and given that the cash it currently has is less than upcoming debt maturities, there is “doubt about the company’s ability to continue operations as a going concern.” The “going concern” language was not included in its second-quarter 10-Q. The stock, which started trading in its current form on July 2, has tumbled 26.8% over the past three months, while the S&P 500 has gained 5.5%.
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