Sometimes a big decline in a stock is something that investors ought to look into in order to figure out if it is an opportunity or if the stock is to be avoided.
Acquires Controlling Interest in G.K. ManufacturingThe premium CBD based oral health products manufacturing company THC Farmaceuticals (OTCMKTS:CBDG) saw its stock take a pounding this past Friday as it slumped by as much as 61% amidst a heavy selloff.
Market Action
On Friday, CBDG stock slumped 61% at $0.0700 with more than 2K, compared to its average volume of 13k shares. The stock has moved within a range of $0.0700 – 0.1692 after opening the trade at $0.1087.
Acquires Controlling Interest in G.K. Manufacturing
While the decline may be alarming, it should be remembered that there was no news about the company on Friday that may have led to such a decline.
As a matter of fact there has been no news about the company for many months and the last time any news emerged about it was back on May 4 this year.
The company had announced at the time that it had signed a binding agreement with regards to the acquisition of a controlling stake in outfit G.K. Manufacturing. G. K. Manufacturing actually belongs to the company Canadian Sativa Inc. At the time, the company noted that the acquisition was going to help it in expanding its CBD based product lines rapidly. At this point, it could be a good idea for investors to keep an eye on the stock and see if it makes a recovery.
Key Quote
“This acquisition positions us to rapidly expand our CBD product lines due to G.K.’s ability to produce up to 12 million product units per month while being conveniently located in Anaheim, California,” said veteran manufacturing lawyer and Vice President of CBDG Mark Grossman.
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