Verde Bio Holdings Inc (OTCMKTS:VBHI) Stock In Focus After Recent Development

Growing oil and gas firm, Verde Bio Holdings Inc (OTCMKTS:VBHI), on September 21, 2022, announced entering into an agreement with a private buyer for the sale of two assets. The transaction for a price of $1,068,300, will be closed before October 21, 2022, with an effective date of December 1, 2022, pending buyer due diligence.

Trading Data

On Wednesday, VBHI stock gained 1.27% to $0.0020 with more than 3.67 million shares, compared to its average volume of 6.65 million shares. The stock moved within a range of $0.0019 – 0.0022 after opening trade at $0.0020.

Verde Bio Holdings Announces Opportunistic Divestiture of Select Properties

The company will achieve about 78% profit with sales price alone, together with revenue generated through holding assets for more than a year. This will mean a significant return on investment in assets.

Furthermore, the company will also get all revenue of assets pertaining to production from the wells through November 2022.

Cox, CEO of Verde said that this is a brilliant example of robust execution of the business model. Cox added that the firm’s strategic acquisition strategy enabled the company to buy the assets at low prices and monetize them.

The CEO also said that the high commodity prices enabled the firm to analyze properties and identify out of favour assets for sale. The company will carry on being opportunities to shareholders with the goal being to build a high-performance portfolio with active management of the assets.

Furthermore, the CEO opined that the company will be reinvesting proceeds from the transaction and will assess a number of other potential acquisitions.

Key Quote

“This is a great example of solid execution of our business model,” Mr. Cox, CEO of Verde, stated. “Our strategic acquisition strategy allowed us to purchase these assets at historically low prices and then monetize them as commodity prices rose to historical highs. The high commodity price environment allowed us to analyze our properties and identify out of favor assets to sell as well as key areas to reinvest the profits. We will continue to be opportunistic for our shareholders when a situation, such as this, presents itself. Our goal is to build a high-performance portfolio with active management of our assets. At times, this will allow us to prune our lower performing properties and reinvest the capital into better performing assets with higher upside potential of new drilling and development. As we have been cultivating a large pipeline of potential acquisitions in the buy-side markets we have also been focused on developing a sell-side market in retail channels including the 1031 Exchange markets.”

Technical Data

VBHI stock is trading below the 20-Day and 50-Day Moving averages of $0.0026 and $0.0030 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0074.