In general, the news of an acquisition is welcomed with a degree of positivity by investors but that was not the case yesterday with NuVim Inc (OTCMKTS:NUVM).
Market Action
On Thursday, NUVM stock slumped 19% to $0.0261 with 1.42 million shares, compared to its average volume of 386k shares. The stock has moved within a range of $0.0225 – 0.0333 after opening trade at $0.0333.
NuVim, Inc. and The Two Drunken Goats Sign Purchase and Sale Agreement
On Thursday, the company was in the news after it announced that it had inked an agreement by way of which it is going to complete the acquisition of Two Drunken Goats LLC. However, the news was not welcomed with any kind of enthusiasm at all and the NuVim stock suffered from a strong selloff. As a consequence, the stock ended the day with a decline of as much as 19%.
In this regard, it should be noted that as per the definitive purchase agreement that was signed by the two parties, certain conditions and terms would need to be fulfilled before the deal can go through. The Chief Executive Officer of NuVim, Rick Kundrat, spoke about the deal as well.
He stated that the company had been in development for quite a while and now the acquisition of Two Drunken Goats could be a ‘pivotal acquisition’ for NuVim as the company tries to bring about growth in its business through it. It remains to be seen if the NuVim stock can bounce back today.
Key Quote
Rick Kundrat CEO of NuVim stated, “After an extended period of time in development, we’re excited by, and plan to focus our efforts to grow NuVim’s business via this pivotal acquisition.”
Traders Note
NUVM stock is trading above the 10-Day and 20-Day Moving averages of $0.0283 and $0.0288. Moreover, the stock is trading is the neutral zone with RSI stands at 45.
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