This morning investors could consider taking a look at the Verde Bio Holdings Inc (OTCMKTS:VBHI) stock in light of the fact that the stock managed to clock gains of as much as 13%.
Trading Data
On Thursday, VBHI stock soared 12.76% to $0.0137 with more than 10.48 million shares, compared to its average volume of 11.20 million shares. The stock moved within a range of $0.0109 – 0.0139 after opening trade at $0.0130.
Verde Bio Holdings, Inc. Announces Termination of BioDiesel Transaction
The company is best known for controlling royalty and mining interests in many areas in the United States which are all producing revenues. Yesterday, the stock came into focus after it announced that it cancelled the agreement in relation to the acquisition of a fair of biodiesel facilities. The potential acquisition of these two facilities had actually been announced by the company in December last year.
The founder and Chief Executive Officer of the company Scott Cox spoke about the decision to cancel the agreements. He stated that Verde Bio Holdings takes a highly disciplined approach with regards to the judgement of assets which it intend to acquire. He noted that although the two properties had provided the company with an option to get into the potentially lucrative renewable energy space, the company was not comfortable with certain aspects.
The magnitude of the debts and the potential capital needs both in the short term as well as the long term were some of the factors behind the about turn.
Key Quote
“Verde maintains a highly disciplined approach to the assessment of potential acquisition candidates. While we were excited by the potential of this transaction to move the Company into the renewable energy space and to create significant stockholder value, we could not get comfortable with the level of debt, short and long-term, capital needs, and time it would take to generate revenue. Towards that end, we have decided that terminating this previously announced transaction is prudent for the Company and our shareholders. While we are growth focused through opportunistic acquisitions such as this, we take debt and the issuance of significant numbers of shares very seriously,” said Scott Cox, Founder and CEO.
Technical Data
VBHI stock is trading above the 20-Day and 50-Day Moving averages of $0.0114 and $0.0103 respectively. The stock is trading in oversold zone with the RSI at 64.
