Wednesday was not a great day in the markets for investors in TGI Solar Power Group Inc (OTCMKTS:TSPG) as the stock suffered from a significant selloff and ended the day with a decline of as much as 15% as a consequence.
If a stock falls by such a magnitude it might be the best time for investors to figure out if the slide is going to carry on or if it is going to be arrested with a quick recovery. As it happens, such falls may often prove to be an opportunity as well, and hence, investors could do well to take a closer look at the nature of TGI Solar Power Group as a company before delving into the latest developments.
Trading Data
On Wednesday, TSPG stock fell 15% to $0.0051 with 125K shares, compared to its average volume of 809K shares. The stock moved within a range of $0.0050 – 0.0064 after opening trade at $0.0055.
About TGI Solar Power Group
The company operates in the form of a diversified holding company. It is involved in the acquisition of patented technology, products, designs, methods, and processes among others which could generate commercial value. TGI Solar Power Group seeks to get a competitive advantage through these acquisitions and then generate value for its shareholders.
TGI Subsidiary to Acquire Miami- based Metaverse Developer XR-Labs
The company had come into the news cycle on Wednesday after it announced that its fully owned subsidiary unit Advent Galaxy Inc had reached an agreement to complete the acquisition of the Miami-based company XR Labs LLC. It was a major new announcement from the company but it did not lead to much enthusiasm among investors and the stock suffered from a major selloff to end the day with substantial losses.
It is going to be interesting to see if the TGI Solar Power Group can make a comeback over the course of the coming days or not. In this situation, it may be a good idea for investors to take a closer look at the deal and the company that it is all set to acquire.
It was announced yesterday that the two parties would be working on the due diligence in order to complete the deal as soon as possible. TGI Solar Power Group has already completed the due diligence reviews in collaboration with the management, attorneys and accountants. Henry Val, who is the Chief Executive Officer of TGI Solar Power Group, noted that the company had been looking for an adequate acquisition candidate for months and eventually settled on XR Labs.
Val stated that the choice of the acquisition had arrived with lots of careful consideration on the strategic fronts. One of the factors that worked in favor of XR Labs was the fact that it was based out of Miami. More importantly, Miami had also become a hub of both augmented reality and extended reality developments in recent times. Those are two spaces in which TGI Solar Power Group had been looking to make an entry for quite some time. Last but not the least, Val also noted that the acquisition is also going to bring in a dynamic, talented, and young team of developers to the TGI Solar Power Group fold.
Technical Data
TSPG stock is trading above the 20-Day and 50-Day Moving averages of $0.0049 and $0.0041 respectively. However, the stock is trading below the 200-Day moving average of $0.0054. The company has a total market capitalization of $8.69 million. The stock is up 34% over the past month. .
