Life Clips Inc (OTCMKTS:LCLP) was in major focus last week and the stock also recorded major gain, but it has been a different story this week. Yesterday, the company provided an update to its shareholders with regards to certain corporate level transactions and key events.
Following the updates, the Life Clips stock fell sharply and declined by as much as 32% due to a case of profit taking. The main trigger behind the rally in the stock was the announcement from the company last week that it had reached an agreement for the acquisition of the blockchain technology company Belfrics Group.
Belfrics is a multinational company and deploys its proprietary platform to operate cryptocurrency exchanges in different nations. Robert Grinberg, who is the Chief Executive Officer of the company, stated due to the immense popularity of cryptocurrencies, the acquisition of Belfrics Group is expected to deliver considerable value to Life Clips shareholders.
He went on to add that the company is going to operate as a subsidiary of Life Clips. Grinberg also said that he expects the acquisition to be closed at some point in the third quarter of this year. The fall in the Life Clips stock due to profit taking on Tuesday could also prove to be an opportunity for new investors.
Market Reaction:
On Tuesday, LCLP stock corrected 32.64% at $0.0293 with more than 498.10 million shares, compared to its average volume of 56.89 million shares. The stock had moved within a range of $0.0279 – 0.0410 after opening the trade at $0.0342. Over the past 52-week, the stock has been trading within a range of $0.0002 – 0.0619.
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