Gourmet Provisions International Corporation (OTCMKTS:GMPR) announced yesterday that it had inked an acquisition agreement for taking up a controlling stake in two Black Rock Bar & Gills based out of Florida. However, the news about the acquisition did not prove to be a source of optimism for investors and the stock promptly suffered from a heavy selloff, thereby ending the day with a decline of as much as 15%.
On Thursday, GMPR stock slid 15.49% to $0.0120 with more than 6.77 million shares, compared to its average volume of 2.99 million shares. The stock moved within a range of $0.0120 – 0.0170 after opening trading at $0.0170.
Gourmet Provisions International Corp. Signs Agreement to Acquire $6 Million+ Black Rock Bar & Grills
As per the provisions of the agreement signed by Gourmet Provisions International Corporation, the company is going to acquire 51% stakes in the Black Rock Bar & Gills locations in Brandon and Tampa in Florida. It should be noted that it is also going to include all the service contracts, revenues, debts and assets.
Despite the drop in the stock price following the announcement, it should be noted that the two outlets generate annual revenues of as much as $6 million combined. This is part of the company’s larger strategy of acquiring controlling interest in the outlets in other states in Ohio, Michigan and Maryland. It is one of the growth strategies that has been adopted by Gourmet Provisions International Corporation. It may be a good time to add the stock to your watch lists.
“We have been working on this acquisition over the past year and are very excited to finalize this deal,” said Jim Vowler, CEO of Gourmet Provisions. “Over the past year, we have learned a lot about the great quality of the Black Rock brand and are currently negotiating the acquisition of other BR locations, which we anticipate obtaining signed agreements over the next couple of quarters.
GMPR stock is trading below the 20-Day and 50-Day Moving averages of $0.0128 and $0.0116 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0233. The company has a total market capitalization of $972K.