Akers Biosciences Inc (NASDAQ: AKER) is having an overwhelmingly strong start to the trading session this morning after making a big announcement. The company is assessing possible business relationships with a potential to break into the cannabis sector. The news excited investors, sending the stock screaming for the top. Today, we’ll talk about the news, what we’re seeing from AKER stock as a result, and what we’ll be watching for ahead.
AKER Announces The Consideration Of Cannabis-Related Products
As mentioned above, Akers Biosciences is up big in the market today, trading in multiples rather than percentages. The gains come after the company announced an update to its strategic alternatives review that was announced back on the seventh of November.
In the release, AKER said that the options it is considering include but are not limited to business combinations in alternatives sectors, including cannabis. The company said that management recently met with various companies in the cannabis sector at the MJBizCon Conference in Las Vegas. The company also announced that it has engaged Feuerstein Kullick LLP as a legal advisor as it continues to look into the cannabis-related opportunities.
Of course, at this stage in the game, there is no guarantee that the company will enter the cannabis sector or that any transaction will take place. Nonetheless, from the update, it looks like chances are good that something big will happen relatively soon.
In a statement, Howard R. Yeaton, CEO at AKER, had the following to offer:
The Board of Directors and management of the Company are considering a number of exciting opportunities for business combinations including within the cannabis industry in which we believe opportunities exist for significant value creation. At the same time, we remain focused on our current business operations and customers and look forward to reporting further developments when appropriate.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Akers Biosciences, the news proved to be overwhelmingly positive. At the moment, investor interest in cannabis is rising as we’re seeing various points of legal reform in the industry around the world, opening the door to opportunity. So, it’s not surprising that with the company’s announcement that it is considering entering the sector, investors are excited and the stock is soaring. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:29), AKER is trading at $2.71 per share after a gain of $1.48 per share or 120.33% so far today.
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What We’ll Be Watching For Ahead
Moving forwrd, the CNA Finance team will continue to keep a close eye on AKER. In particular, we’re interested in following the story surrounding the company’s potential to break into the cannabis sector. After all, if this does happen, investor excitement could continue to run and the stock could go far further than what we’re seeing today. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!