good-natured Products Inc (OTCMKTS:GDNPF) stock Surges On Closing of its Acquisition of FormTex Plastics

While the markets were closed in the United States yesterday, the ones in Canada were still open and it could be a good move for investors to consider taking a look at some stocks that may have rallied yesterday in that particular market. One of the significant movers yesterday was the good-natured Products Inc (OTCMKTS:GDNPF) stock, which ended the day with gains of as much as 8% amidst considerable interest.

Trading Data

On Friday, GDNPF stock surged 8.44% to $0.3354 with more than 31K shares, compared to its average volume of 10K shares. The stock moved within a range of $0.2763 – 0.3354 after opening trade at $0.3065.

About The Company

good-natured Product is a leader in the North American plant-based products space and in addition to that, it seeks to manufacture its products in an environmentally friendly manner. It manufactures its products from renewable resources and does not use fossil fuels at all. On the other hand, good-natured is fully committed to making it possible for companies to make a move away from petroleum and get into better everyday products that deploy renewable energy and do not contain any chemicals.

In light of the gains made by the stock yesterday, it could now be a good time for investors to consider taking a look at the development that may have led to the rally.

good-natured Products Inc. Announces the Closing of its Acquisition of Houston-based FormTex Plastics

The company announced yesterday that it had been successful in completing the acquisition of FormTex Plastics Corporation. The transaction had been completed by the company through a fully owned subsidiary company. The news about the acquisition led to significant excitement among investors and the rally in the stock yesterday was perhaps an indication of that. It is however going to be interesting to see if the stock can actually manage to hold on to its momentum and add to its gains today.

The transaction was completed through a cash payment of $4.8 million. The funding of the transaction is going to be made through the company’s own treasury.

The provisions of the agreement with regards to this transaction had first been announced by the company back on May 4, 2022, in a press release. It is an acquisition that could help the company in growing its packaging business at a fairly impressive clip. Investors could do well to track the stock today.

Key Quote

“We are very pleased to complete this Acquisition and welcome everyone at FormTex to the good natured® family,” said Paul Antoniadis, CEO of good natured®. “The addition of FormTex expands the scope and reach of our packaging business, in-line with the strategic direction we’ve communicated, and we believe there is material upside potential for revenue and profitability through capacity expansion, supply chain improvements, and cost synergies previously disclosed.”