When a company is acquired then it can often lead to a rally in its stock and that is what seems to have happened with the Energy 1 Corporation (OTCMKTS:EGOC) stock yesterday.
Yesterday, the stock was in major focus among investors and ended up clocking gains of as much as 26% amidst heavy interest. The rally in the stock might have been triggered by the fact that last week it was announced that the Nevada based company had been acquired by Shanghai Yicheng Culture Communication Co Ltd, a multinational technology services company. The entirety of the equity interest in the company was acquired by Shanghai Yicheng to complete the acquisition.
As part of the agreement between the two companies, Energy 1 Corp convened a meeting of its board of directors and appointed Liu Yicheng as its board chairman. Two other appointments had also been made. It is a major development for the company and it seems that the market has also given thumbs up to the acquisition. It is now going to be interesting to see if the Energy 1 Corp stock continues to add to its gains over the course of the coming weeks. Investors could do well to keep an eye on it.
Market Reaction:
On Monday, EGOC stock gained 25.71% at $0.0132 with more than 16.47 million shares, compared to its average volume of 10.24 million shares. The stock had moved within a range of $0.0105 – 0.0150 after opening the trade at $0.0115. Over the past 52-week, the stock has been trading within a range of $0.0002 – 0.0180.
 Stock Extends Rally: What’s Ahead?){kind=link}