Siyata Mobile Sinks As Retail Digests Merger With Core Gaming: Stock Loses Over Half Its Value Since Announcement

Siyata Mobile Inc. (SYTA) shares tumbled more than 28% in Thursday’s regular trade and continued to slide in after-market hours as retail investors digested the news of its merger with Core Gaming.

Since the merger announcement on Wednesday, Siyata’s stock has lost more than half its value, with over a 57% decline in value. Its market capitalization has shrunk to $3.9 million.

The stock hit a new 52-week low of $2.82 before closing at an all-time low of $2.98 on Thursday.

Siyata announced the merger with privately held Core Gaming Inc., valued at $160 million. Core Gaming will become a wholly-owned subsidiary of Siyata, and its CEO, Aitan Zacharin, will lead the newly merged entity.

According to a release by Siyata, Core Gaming generated $80 million in revenue in 2024. It has published over 2,000 mobile games and has over 40 million monthly active users (MAU).

Siyata is a Montreal-headquartered company that develops push-to-talk cellular devices, rugged handsets, and in-vehicle devices aimed at enterprises and first responders.

The reverse merger will give Siyata shareholders a right to a stock dividend within six months of the approval, giving them a 10% stake in the combined entity.

“The timing of this transaction is significant given the positive outlook for Core Gaming's business. Core Gaming operates in the fast-growing mobile gaming industry, and we believe is well-positioned for rapid growth in the near term,” said Marc Seelenfreund, CEO of Siyata.

Reacting to the stock drop, one user on Stocktwits thinks it is “just ridiculous.”

Another user tried to counter the criticism that the company is facing, pointing to a recent partnership with T-Mobile US Inc. (TMUS).

https://stocktwits.com/kersh1116/message/606128314

Siyata’s stock has lost most of its value in the past year, falling by 99.53%.

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