When a stock soars by as much as 81% in a single day, it may be the right time for investors to sit up and take notice. On Wednesday, it was the Emergent Health Corp (OTCMKTS:EMGE) stock that came into major focus among investors and ended up rallying to that extent. In light of such a rally, it may be the right time for investors to perhaps get a better idea about the company and then take a plunge into the recent developments which may have led to the rally.
Trading Data
On Wednesday, EMGE stock surged 81.11% to $0.0163 with more than 108.33 million shares, compared to a volume of 2.87 million shares. The stock moved within a range of $0.0091 – 0.0305 after opening trade at $0.0095.
About The Company
Emergent Health Corp is involved in the production of regenerative medicines as well as improved neutraceuticals and seeks to make these products available to customers even without a prescription. The products manufactured by Emergent Health are distributed through online channels and also by placing it on content by way of influencers based out of the United States.
However, that is not all. Not too long ago Emergent Health managed to complete the acquisition of PharmaZu, which now functions as its subsidiary and is well-known for being an e-commerce platform that is focused on the pet community. It ought to be noted in this regard that the company does not claim that is products are approved by the United States Food and Drug Administration or cures any kind of disease.
Emergent executes Letter of Intent with Regen Biowellness, Inc.; Former L’Oréal President Jim Morrison to join Emergents Management Team
On Wednesday, the company was in the news cycle and came into sharp focus among investors after it announced that it had inked a letter of intent with regards to the acquisition of the company RegenBiowellness Inc. It could well prove to be a significant strategic acquisition for Emergent considering the fact that RegenBiowellness is a distributor of a range of products in the regenerative and plant-based medical industries.
It was also noted that after the closure of the potential acquisition, the Chief Executive Officer and President of RegenBiowellness, Jim Morrison would join the management team of Emergent. That could prove to be a major new addition to the management of Emergent since Morrison is a major name in the world of the personal care industry having been the President of L’Oreal in the past.
During his time at L’Oreal, he had overseen significant growth for the cosmetics behemoth as it averaged year over year growth of 20% during his tenure. In addition to that, he had also been responsible for the successful acquisition of Matrix and Redken and brought about never seen before growth. Hence, it can be said that his addition to the management could prove to be a massive long-term boost for Emergent.
The reaction of the market participants to the news of the potential acquisition and the joining of Morrison was perhaps understandable. At this point in time, it is going to be interesting to see if the Emergent stock can manage to hold on to its momentum or not. After having clocked such enormous gains, it could be a good idea to watch out for any profit booking.
Key Quote
James W. Zimbler, CEO of Emergent stated, “Emergent is embarking on a course to expand its health and wellness, biologic medical offering for both people and pets. When the transactions are closed, the added entities, along with our current offerings, including pet meds offered through PharmaZu, will provide an enormous variety of products.”
Technical Data
EMGE stock is trading above the 20-Day and 50-Day Moving averages of $0.0099 and $0.0088 respectively. However, the stock is trading below the 200-Day moving average of $0.0313. The company has a total market capitalization of$683k The stock is up 171% over the past month.
