Leading Brands, Inc (USA) (NASDAQ: LBIX) is having a pretty strong day in the market today after announcing that it has entered into a key support agreement. Of course, this led to excitement among investors, causing the stock to make a run for the top. Today, we’ll talk about the agreement, what we’re seeing from LBIX, and what we’ll be watching for ahead.
LBIX Gains On Support Agreement
As mentioned above, Leading Brands is having a strong day in the market today after announcing that it has entered into a Support Agreement with Liquid Media Group. Liquid Media Group is a subsidiary of Majesco Entertainment Company. Ender the terms of the agreement, LBIX will invest in the exploitation of Majesco’s gaming properties in Asia.
Under the terms of the agreement, LBIX will advance funds to Majesco so that Majesco can in turn retain WEb Presence in China to further its IP properties. WPIC will help to make sure that Majesco meets Chinese consumer demands including hosting in China with maximum up-time and fast load times. The network will also include customized video and social media functionality. Through this support the company will develop a WeChat posting function for user comments and unique QR codes that will be used for on-location approval for vouchers and coupons.
Also, in the press release, Leading Brands said that in exchange for its investment in the company, it will have the opportunity to receive up to 5% of the net profits from sales of Majesco gaming assets in Asia for a period of five years.
How The Stock Is Reacting To The News
One of the first lessons that we learn when we start to dig into the market is that the news causes movement. In this particular case, the news proved to be overwhelmingly positive, leading to excitement among investors and sending Leading Brands rocketing for the top. Currently (11:33), LBIX is trading at $1.46 per share after a gain of $0.07 per share or 5.11% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on LBIX. In particular, we’re interested in following this collaboration to see what kind of revenue it generates for the company over the next 5 years. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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