Planet Green Holdings Corp (NYSEAMERICAN: PLAG) is having an incredibly strong start to the trading session today, and for good reason. The company announced acquisition news that’s exciting investors and pushing the stock to the top. Today we’ll talk about:
- The acquisition news;
- what we’re seeing from PLAG stock as a result; and
- what we’ll be watching ahead.
PLAG Announces Acquisition News
As mentioned above, Planet Green is having a great day in the market today after announcing acquisition news. The news came via press release early this morning.
In the release, the company said that it has entered into a Share Exchange Agreement with Xianning Bozhuang Tea Products (Target) on May 9, 2019. According to the terms of the agreement, the company will acquire all outstanding equity interests of Target.
The Target company is one that produces tea products and sells such products in China. According to the terms of the agreement, the company will issue 1.08 million shares of common stock to the seller in exchange for all equity interest in the Target.
PLAG said that the transaction is subject to customary closing conditions. As fo closing, the company’s board of directors will consist of five individuals. One of these individuals will be designated by the Target.
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 Planet Green, the news proved to be overwhelmingly positive.
After all, this acquisition brings new products under the umbrella, offering up the opportunity for substantial gains in revenue. So, it’s not shocking to see that the stock is making a run for the top as excited investors push it up.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:!8), PLAG is trading at $4.85 per share after a gain of $0.42 per share or 9.48% 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 clsoe eye on PLAG. In particular, we’re interested in following the story surrounding the acquisition as the agreement is still subject to customary closing conditions. Nonetheless, we’ll keep a close eye on the story and bring the news to you as it breaks!
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