An investor who could be looking into the major gainers from yesterday may have noticed that Unique Logistics International Inc (OTCMKTS:UNQL) emerged as one of the biggest gainers on Wednesday. The stock attracted heavy action and ended up with gains of as much as 19% for the day.
Trading Data
On Wednesday, UNQL stock gained 17.20% to $0.0230 with more than 38.69 million shares, compared to its average volume of 3.96 million shares. The stock moved within a range of $0.0210 – 0.0319 after opening trade at $0.0225.
Unique Logistics Enters Definitive Agreement to Acquire Operating Subsidiaries and Affiliates of Former Parent Company
The worldwide logistics and freight forwarding firm, which is experiencing fast growth, announced yesterday that it had inked a stock purchase agreement by way of which it would complete the acquisition of Unique Logistics Holdings Limited. The acquisition target is a Hong Kong based corporation and the announcement led to considerable positivity among investors.
In this situation, it may be a good idea for investors to take a closer look at the structure of the deal. Unique Logistics International agreed to make a cash payment of as much as $21,000,000 and in addition to that provided a promissory note with a valuation of $1,000,000. The companies acquired are situated in United Kingdom, China, Taiwan, Hong Kong, Vietnam and India.
Hence, the transaction is expected to further boost the foot print that United Logistics International already enjoys. Hence, the rally in the stock was perhaps not a surprise.
Key Quote
Commenting on the potential acquisition, CEO Sunandan Ray stated, “The acquisition of these operating companies is in line with our strategic plan to become a leading supply chain service provider. These acquisitions would serve to strengthen our control over supply chain services including capacity management and procurement. These companies are currently handling, in their regions, the business of our customers. We expect that the acquisitions, once closed, would increase our net revenue and would have a significant positive impact on our EBITDA.”
Technical Data
UNQL stock is trading below the 20-Day and 50-Day Moving averages of $0.0242 and $0.0266 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0323.
