Nxt-ID Inc. shares (NAS:NXTD) surged 15% in premarket trade Friday, after the company unveiled plans to spin off its payments division into a separate listed entity. The Sebastian, Fla.-based Nxt-ID, which makes technology for identify verification, security and data protection, said it expects the deal to be completed by Nov. 15. Nxt-ID shareholders who owns shares on Oct. 15, will own shares in both companies. The new entity will include assets acquired in a May 2017 business combination with Fit Pay Inc., as well payment and authentication assets developed previously. The new company has an investment commitment for $6 million and will apply to list on Nasdaq. "We believe that this transaction will help to unlock the true value of both our payments and our healthcare businesses," Chief Executive Gino Pereira said in a statement. Shares have fallen 60.6% in 2018, while the S&P 500 (S&P:SPX) has gained 9.6%.
Sept. 21, 2018, 8:15 a.m. EDT