Yesterday, investors did not seem particularly enthused with the Entourage Health Corp (OTCMKTS:ETRGF) stock and hence, it was perhaps no surprise that the stock tanked by as much as 7%.
Market Action
On Wednesday, ETRGF stock fell 7% at $0.1210 with more than 138k shares, compared to its average volume of 135K shares. The stock has moved within a range of $0.1201 – 0.1300 after opening the trade at $0.13.
Closes Acquisition of Craft Cultivator CannTx Life Sciences Inc.
While the decline in the stock was notable, it should also be remembered that there was no specific news about the company on Thursday. However, earlier on in the week on November 1, the Canada based cannabis distributor and producer had been in the news when it made a key announcement. Entourage Health Corp announced at the time that it had finally completed the acquisition of CannTX.
In this context, it should be noted that the company had previously announced about the potential acquisition. The transaction was supported overwhelmingly by the shareholders of CannTX and the other conditions with regards to the closing of the acquisition had also been satisfied.
Now that the acquisition is complete, CannTX is going to be operated as a fully owned subsidiary company of Entourage. It goes without saying that the acquisition of the privately owned micro-propagating company was a significant development for Entourage. Despite the decline in the stock price, it could still be a good idea for investors to keep an eye on the Entourage stock this week.
Key Quote
“In finalizing this complementary transaction with the CannTx team, we are thrilled to emerge as a cannabis operator widely recognized for consistently producing award-winning cannabis products and brands – which now houses some of the most sought-after genetics, IP and craft specialities in Canada,” said George Scorsis, Interim CEO and Executive Chairman, Entourage. “We have brought together a team of industry experts and talented people that are crafting cannabis with passion and heart – all dedicated to bringing craft-grade cannabis products to our local markets. With new strains and further product expansion into hash, rosin production, tissue culture, micropropagation and craft cultivation specialties, we’re thrilled to add Royal City Cannabis Co. to our brand portfolio that includes Color Cannabis, Saturday Cannabis, Starseed Medicinal and Mary’s Medicinals Canada.”
Traders Note
ETRGF stock is trading below the 200-Day and 20-Day Moving averages of $0.13 and $0.16 respectively. Moreover, the stock is trading below the 50-Day moving average of $0.24. The stock is down 37% so far this year.
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