After International Land Alliance Inc (OTCMKTS:ILAL) provided an update with regard to one of its acquisitions yesterday, the company’s stock came under pressure and ended up with a decline of as much as 5%. The update was with regard to the binding letter of intent for picking up a 75% stake in the Rancho Costa Verde Development LLC for a sum of $13,500,000.
Trading Data
On Thursday, ILAL stock slumped 5% to $0.3800 with 74.65K shares, compared to volume of 46.75K shares. The stock moved within a range of $0.2451 – 0.4000 after opening trade at $0.2451.
International Land Alliance Updates Binding Letter of Intent to Acquire Remaining 75% Rancho Costa Verde Development, LLC
The update with regards to the binding letter of intent had been announced previously by the company. The company had picked up a 25% minority stake back in 2021. Yesterday, International Land Alliance announced that it had been successful in expediting the whole thing and due diligence had been completed.
Now that those processes have been completed, International Land Alliance was now preparing to close the transaction. The acquisition could well prove to be a significant one for the company considering the fact that Rancho Costa Verde Development is a profitable business. It is currently best known for being the developer of a master-planned community spanning 1100 acres in Baja California.
Although the International Land Alliance stock slumped by 5% yesterday, it would be interesting to see if it can make recovery any time soon.
Key Quote
Jason Sunstein, ILA CFO, commented: “In addition to the tremendous impact this acquisition will have on our Company from a financial perspective, more importantly, is the addition of the RCV team going forward. The RCV team has sold in excess of $500M in real estate in the San Felipe region over the last 20 years. With an incredible track record and a well-established network of real estate agents throughout California, their sales and marketing expertise will be utilized across all of our projects.”
Technical Data
ILAL stock is above the 20-Day and 50-Day Moving averages of $0.27 and $0.34 respectively. However, the stock is trading below the 200-Day moving average of $0.48. The company has a total market capitalization of $13.68 million. The stock is down 8% over the past month.
