Shares of SusGlobal Energy Corp (OTCMKTS:SNRG) continued to trend higher on Monday and up 105% in a week.
Trading Data
On Monday, SNRG stock gained 13.50% to $0.3518 with more than 1.11 million shares, compared to its average volume of 127k shares. The stock moved within a range of $0.3200 – 0.3849 after opening trade at $0.36 .
SUSGLOBAL Signs Agreement to Acquire a Leading Soil Media Producer
Industrial, environmental, and agricultural biotechnology company, SusGlobal Energy Corp (OTCMKTS:SNRG) on March 14, 2022, announced that the wholly-owned subsidiary, SusGlobal Energy Canada Corp entered into a non-binding letter of intent. This will enable the acquisition of plant nutrients, soil media, and amendments produced approved for organic use and formulated for producing high-quality fruit and flowering crops.
SusGlobal Canada will be making a US$3,925,471 (CA$5,000,000) investment into Target and providing a US$157,018 (CA$200,000) deposit. The company is making definitive transaction documents including Purchase and Sale Agreement for complete shares of Target. In case the acquisition does not completed by the agreed date, the Deposit shall be refunded to SusGlobal Canada.
The acquisition will advance SUSGLOBAL’s growth strategy and align with the firm’s goal of growing market share and revenues.
Marc Hazout, Founder, Chairman and Chief Executive Officer of SUSGLOBAL said that the potential acquisition is an example of the firm delivering on its pursuit of strategic acquisitions for growing business. Hazout added that the assets, branding experience, as well as superior organic products, are complementary to the existing licensed infrastructure supply. He further said that the timing of the potential acquisition fits well with the schedule of finishing the development of the Hamilton facility.
The company confirmed that it will be able to fund the acquisition if it goes through.
Key Quote
“This potential acquisition is an example of SUSGLOBAL delivering on our commitment to pursue strategic and accretive acquisitions to continue growing our business,” said Marc Hazout, Founder, Chairman and Chief Executive Officer of SUSGLOBAL. “Its assets, customer base, branding experience, and superior organic products are highly complementary to our existing licensed infrastructure and feedstock supply. All of its offerings are currently at big box retailers allowing the leveraging of our production facility integration and cross-selling opportunities, as well as the expansion of our operations into new regions.”
Technical Data
SNRG stock is trading above the 20-Day and 50-Day Moving averages of $0.21 and $0.20 respectively. Moreover, the stock is trading above the 200-Day moving average of $0.24.
