If a stock gains momentum then it generally indicates that it may continue to add some gains in the near term and hence, investors are almost always on the lookout for such stocks. There were some stocks that had managed to gain momentum on Tuesday and one of those was the Branded Legacy Inc (OTCMKTS:BLEG) stock.
Hence, it may be a good time for investors to consider taking a closer look into it and make their minds up about the merits of the stock. However, first and foremost, it is important for investors to take a look at the nature of the company and its business. Once that is done, it may be prudent to look into the latest developments which may have an effect on the stock.
Trading Data
On Tuesday, BLEG stock gained 3.12% to $0.0165 with 259K shares, compared to its average volume of 31K shares. The stock moved within a range of $0.0165 – 0.0271 after opening trade at $0.0250.
About The Company
Branded Legacy is involved in the commercial development of CBD and hemp laced beverages for the Central Florida market. In addition to that, the company also offers CBD laced tinctures and tropical as well as hemp based teas and coffees. In the past, the company had been known as Elev8 Brands Inc but it changed its name to the present one in May 2020.
Branded Legacy, Inc. Announces Cancelation of 102 Million Common Shares
The company is based out of Longwood in Florida. The company has actually come into the news cycle yesterday after it announced that it had been successful in reducing the number of its outstanding and issued shares by as much as 102000000 shares. It is part of the larger strategy from Branded Legacy to tighten its share structure this year. In order to accomplish this, the company has managed to get into exchange agreements with ex-employees for the purpose of eliminating as much as 23% of the outstanding and issued shares.
The Chief Executive Officer of Branded Legacy, Jermain Strong spoke about the situation as well. He noted that the management was doing everything possible to bring about growth and one of the major steps in that direction was that of improvement of the share structure.
The latest reduction in the number of issued and outstanding shares has brought the total number of shares to 336,982,816. Strong added that he felt that the company was moving in the correct direction and on top of that, he noted that Branded Legacy was also going to embark on a share buyback program for the purpose of boosting shareholder value further. However, that was not all. It was also announced yesterday that the company was working on ways for the cancellation of 80 million more shares.
Branded Legacy, Inc. Acquires Astound NMN from Rimrock Gold Corp.
Last month the company had been in the news as well when on July 13 it announced that it had managed to complete an asset purchase agreement with the company Rimrock Gold Corp for the purpose of acquiring Astound NMN. Astound is a well-known name in the world of NMN supplements and these supplements have grown in popularity in recent times. It now remains to be seen how Branded Legacy manages to leverage its latest acquisition in the near term.
Technical Data
BLEG stock is trading below the 20-Day and 50-Day Moving averages of $0.0178 and $0.0191 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0343. The company has a total market capitalization of $259K. The stock is down 15% over the past month.
