iCoreConnect Inc

iCoreConnect Inc. (iCoreConnect) (NASDAQ: ICCT) is a cloud-based software and technology company. The Company is focused on increasing workflow productivity and practice profitability through its enterprise and healthcare workflow platform of applications and services. It is primarily engaged in providing solutions to solve the healthcare business problems.

Recent Business Updates:

Announcement Regarding Trading of Common Stock, Warrants and Preferred Stock:

• This announcement pertains to the successful completion of the business merger between iCoreConnect Inc. and FG Merger Corp. (Nasdaq: FGMC), a special purpose acquisition corporation.
• Key aspects of the merger include:
• Stock Conversion: The shares of ICCT that were trading on the OTC Market have been transformed into common stock shares of the merged entity. This combined entity will continue operating under the name iCoreConnect Inc. and will be listed for trading on The Nasdaq Capital Market with the trading symbol "ICCT" starting from August 28, 2023.
• Share Ratio: For every 29.84 shares of ICCT that were outstanding prior to the merger's closure, the shareholders received one share of the combined company's common stock. This was calculated based on an equivalent share price of USD 5.71. This equivalence was determined using the closing price of ICCT's common stock on August 25, 2023, which was USD 0.19 per share.
• FGMC Common Stock Conversion: The FGMC common stock that was not redeemed as part of the merger process has been converted into preferred stock of the merged entity. This preferred stock will be traded on the OTC market. Noteworthy details of this preferred stock are as follows:
• It carries a 12% coupon, payable either in cash or paid-in-kind. The payment method varies based on the time frame: cash payment for the initial 24 months after the merger's completion, and cash thereafter.
• The conversion price from common stock to preferred stock was initially set at USD 10.00 per share.
• Investors who hold the preferred stock are protected against potential declines in value for the first 12 months. After this period, the conversion price will be adjusted based on the trading price of ICCT's common stock. The adjusted price can range from no less than USD 2.00 to no more than USD 10.00 per share. The calculation for this adjusted price considers a 20% increase above the simple average of the volume weighted average price over the 20 trading days following the first 12 months of the preferred stock.
• Preferred Stock Terms: The preferred stock is perpetual, meaning investors are not obligated to convert it. However, if the common stock of the merged entity surpasses 140% of the current conversion price after 24 months from the merger's closure, investors will be compelled to convert.
• Liquidation Preference: The preferred stockholders are safeguarded by a USD 10 per share liquidation preference, along with any accrued and unpaid dividends. This preference ensures that preferred stockholders have priority over common stockholders in the event of a sale or liquidation scenario.
• FGMC Warrants Conversion: The FGMC warrants have been converted into warrants for the preferred stock of the merged entity, which will also trade on the OTC market.
• Trading Information: Effective from August 28, 2023, the common stock, warrants, and preferred stock of the merged entity will begin trading using new CUSIP and ISIN identifiers (International Securities Identification Number).
  

Technical Observation (on the daily chart)

The stock has given a return of around 828.68%, within a time of three trading sessions, on the context of commencement of trading on the NASDAQ capital market from OTC market.  The RSI (14 period) momentum indicator is at a value of 62.93, with expectations of some consolidation or a short-term correction. Moreover, the price is currently positioned above both the 21-day SMA and 50-day SMA trend-following indicators, which may act as dynamic short-term support levels.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Watch’ rating has been given to iCoreConnect Inc. (iCoreConnect) (NASDAQ: ICCT) at the current market price of USD 13.82 as of August 31, 2023, at 08:10 am PDT.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The Green colour line reflects the 21-period simple moving average (SMA) while the red line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Black colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps with easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is August 31, 2023. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.

Disclaimer

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