Although Majic Wheels Corp (OTCMKTS:MJWL) was in the news yesterday owing to a major announcement, the company’s stock did not perform well and suffered from a selloff to end the day with losses of 4%.
On Monday, MJWL stock fell 4.10% to $0.0796 with 5.01 million shares traded, compared to its average volume of 6.26 million shares. The stock has moved within a range of $0.0400 – 0.4420 after opening trade at $0.05.
Acquires 26% Stake In Bamboo At US$126 Million Post Money Valuation
The company, which is looking to become a disruptive operator in the software development and financial technology spaces, announced yesterday that it had managed to complete the acquisition of a 26% equity stake in the company Bamboo Wellness Holdings Limited. It was a major development for the company but the news did not lead to much optimism among investors yesterday.
In this context, it is also necessary to note that the stake was picked up at a post money valuation of as much as $126 million. The Chief Executive Officer of Majic, David Chong, spoke about the developments as well. He stated that ever since Majic had signed the letter of intent with regards to the acquisition some time ago, Bamboo Wellness has proven to be ‘remarkable’.
He went on to state that Bamboo Wellness also managed to surpass expectations as a company. It now remains to be seen if the stock can manage to manage to make a recover at any point this week or not.
“Since we announced this LOI, Bamboo’s success has been remarkable, and in many ways we are well ahead of our initial expectations.” David Chong, Majic’s CEO said. “We welcome Bamboo to the Majic family and look forward to supporting its expansion with our wide reach of various strategic markets in our global network.”
MJWL stock is trading below the 20-Day and 50-Day Moving averages of $0.0887 and $0.1039. Moreover, the stock is trading is the neutral zone with RSI stands at 41.