Darkstar Ventures Inc (OTCMKTS: DAVC) has taken the market by storm on announcing plans to merge with Samsara Luggage. Shares of the company have exploded up the charts on the news.
Darkstar Venture Price Analysis
A merger with Samsara could not have come at a better time as the stock has continued to struggle for direction after succumbing to bearish pressure in 2018. The stock has since taken out the $0.01 psychological level, arousing suggestions it is a potential break out play.
While the stock remains vulnerable to further drops given the underlying long-term bearish trend, the short-term momentum has turned bullish. The underperformance of the past year means the stock will have to take out the $0.02 resistance level to avert further slides.
A rally followed by a close above the $0.02 mark should open the door for the stock to make a run for the $0.05 mark, which is the next resistance level below which the stock remains bearish. Above the $0.06 mark, Darkstar Ventures should be bullish with the prospect of edging even higher.
What Does Darkstar Ventures Do?
Darkstar focuses on Real Estate development through its subsidiary Bengio Urban Renewals. The subsidiary currently has 38 projects under construction in Israel. It also represents tenants in their agreements with real estate developers.
Why is Darkstar Ventures Exploding?
Ever since Darkstar Ventures announced it was in the process of merging with Samsara Luggage, its stock has taken a flight, bottoming out from all-time lows in the process. Samsara bills itself as a pioneer in the travel-tech industry, whereby it combines design technology and aviation-standard materials.
The two companies have signed a Letter of Intent under which Darkstar Ventures is to merge 100% of Samsara Luggage, which will in return takeover 80% of DAVC shares on a dilutive base.
Darkstar Ventures is flying in the market on investors taking note of the fact that the merger is poised to diversify the core business. With the merger, the company will now expand its footprint into the smart travel tech business.
“We are proud to consolidate Samsara Luggage technology and products into our public company and are convinced this is a win-win merger that will provide Samsara the means to become a global market leader in the field of smart travel tech,” says Avraham Bengio, CEO of DAVC.
According to Samsara Co-Founders, David Dahan, the merger will pave the way for the company to make available all its smart luggage solutions available online and in Amazon stores worldwide.
The merger also comes high on the heels of Samsara receiving an investment from Golden State Warriors NBA star Demarcus Cousin. The NBA star will now double up as the company’s brand ambassador.
Real Estate Operations
While a merger with Samsara is poised to expand Darkstar Venture footprint into the smart travel tech business, the company also remains focused on its real estate businesses under the Bengio Urban Renewal Empire.
Founded by veteran real-estate entrepreneurs, Bengio Urban Renewal specializes in the building, reinforcement, and reconstruction in Israel. The company also supervises projects from the very beginning to their successful completion.
Early last year, Darkstar Ventures confirmed that it was preparing for the first of several building projects in Israel. Part of the projects involved the demolition of edifice consisting of 12 units and the construction of 36 units in its place.
“We are resolute in building upon our Company’s business model. There is substantial interest in the opportunities at hand. Our goal is to build value in the Company through the development of properties and accumulation of real-estate assets, thus creating long-term tangible value for our shareholders,” explained CEO Avraham Bengio.
What Next For Darkstar Ventures
Darkstar Ventures had taken a significant hit on failing to provide updates highlighting core business development and long-term prospects. Fast forward, the company has come through, confirming a merger with Samsara, which is set to further strengthen and expand its footprint into the smart tech space.
A combination of smart travel tech and real estate operations could as well explain why the stock is flying high. After the recent spike, the worst looks to behind the company as a new era looks set to begin.
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Disclosure: We have no position in DAVC and have not been compensated for this article.