NEW YORK (TheStreet) -- Shares of Spherix (SPEX) are soaring by 98.48% to $3.79 on Tuesday morning, after the New York City-based intellectual property company announced a second licensing agreement with RPX (RPXC).
Per the agreement, Spherix will receive a cash payment and return of all of its "Series H" preferred stock, which is currently being held by RPX. This represents the entire class of "Series H" shares outstanding, Spherix said in a statement.
In return, RPX will receive a portfolio license, which the patent risk management solution provider can use to grant sub-licenses to its clients, according to Spherix.
"We are pleased to have reached this second license agreement with RPX. We continue to seek long-term, mutually beneficial license agreements that represent a positive outcome for our shareholders," Anthony Hayes, Spherix's chief executive officer, stated.
Separately, TheStreet Ratings rated Spherix as a "sell" with a score of D-.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon.
Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
This is driven by a number of negative factors, which TheStreet Ratings believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks that are covered.
The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: SPEX