While it is true that the eco-friendly technology provider for the worldwide agriculture industry GreenGro Technologies Inc (OTCMKTS:GRNH) made a major new announcement yesterday, it did not lead to any boost for its stock.
Trading Data
On Wednesday, GRNH stock decreased 12.50% to $0.0028 with more than 1.22 million shares, compared to its average volume of 1.21 million shares. The stock moved within a range of $0.0028 – 0.0037 after opening trading at $0.0037.
GreenGro Technologies to Pursue New Three-Pronged Strategic Growth Initiative Designed to Establish First-Mover Advantage and Dominant Share of Booming Global AgTech Markets
The company announced yesterday that it was going to go for a strategic growth program that was going to have three distinct provisions. The three-pronged approach is designed to help the company in securing first mover advantage in certain markets and become the dominant player. However, the announcement led to a selloff in the GreenGro stock and it ended the day with a decline of as much as 12%.
The company noted that the strategic restructuring of its business and significant investments that it had made had led to considerable return on investment in the first half as well as the second fiscal quarter of 2022. GreenGro noted that it had invested millions into research and development activities and the investment had borne fruit.
The business units have managed to record significant growth and in the first half of the year alone, those units have recorded growth of as much as 800%. In the second fiscal quarter, the growth had been pegged at 200%.
Key Quote
“We wanted to take an opportunity to provide our investors with a brief glimpse of the return on investment (ROI) we are experiencing as a result of our strategic restructuring plan and millions of dollars of investments in research and development. From a pure financial perspective, the ROI can be easily measured by the dramatic turnaround in our business units with revenue gains of 200% and 800%, respectively, for our second quarter and first half of the current fiscal year.”
Technical Data
GRNH stock is trading below the 20-Day and 50-Day Moving averages of $0.0036 and $0.0044 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0055. The company has a total market capitalization of $1.07 million.
