Why Bigtincan, Over the Wire, Resolute, & Uniti shares are dropping lower

Bigtincan Holdings Ltd (ASX:BTH) and Over the Wire Holdings Ltd (ASX:OTW) shares are two of four dropping lower on Wednesday…

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It has been a very positive day for the S&P/ASX 200 Index (ASX: XJO) on Wednesday. In late morning trade the benchmark index is up 0.8% to 6,654.5 points.

Four shares that have failed to follow the market higher today are listed below. Here's why they are dropping lower:

Bigtincan Holdings Ltd (ASX: BTH)

The Bigtincan share price is down 3% to $1.08. Investors have responded unenthusiastically to the company's acquisition announcement this morning. Bigtincan has entered into a binding agreement to acquire unified sales enablement platform provider, ClearSlide, for US$16.25 million (A$22.6 million) in cash. ClearSlide is expected to report annualised recurring revenue (ARR) of ~US$5.2 million in 2021.

Over the Wire Holdings Ltd (ASX: OTW)

The Over the Wire share price is down a further 6% to $3.98. Investors have been selling the telecommunications, cloud and IT solutions provider's shares since the release of a trading update yesterday. That update revealed that the company expects to report a 22% to 28% increase in EBITDA in the first half. However, this has been boosted by acquisitions. Its existing businesses will deliver lower EBITDA than a year ago.

Resolute Mining Limited (ASX: RSG)

The Resolute share price has come under pressure and is down 2.5% to 77.5 cents. Investors have been selling Resolute and other gold miners on Wednesday after the spot gold price pulled back overnight. This has led to the S&P/ASX All Ordinaries Gold index trading 0.9% lower at the time of writing.

Uniti Group Ltd (ASX: UWL)

The Uniti share price is down 1% to $1.70. This morning the telco announced the details of the share purchase plan from its equity raising to fund the acquisition of the Telstra Velocity assets from Telstra Corporation Ltd (ASX: TLS). Uniti is aiming to raise $10 million at the lower of $1.50 per new share or the volume weighted average price of its shares during the five trading days up to and including 20 January plus a 2% discount.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends BIGTINCAN FPO. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Over The Wire Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended BIGTINCAN FPO and Over The Wire Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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