ECGI Holdings Inc (OTCMKTS:ECGI) Stock Falls After The Acquisition News
One of the companies which could be worth tracking this morning is ECGI Holdings Inc (OTCMKTS:ECGI) in light of the announcement from the company on Thursday. It is a portfolio company but not too long ago it decided to pivot into the legal cannabis space.
On Thursday, ECGI stock moved down 12.50% to $0.0350 with more than 745.79K shares, compared to volume of 54.21K shares. The stock moved within a range of $0.0250 – 0.0600 after opening trade at $0.0400.
ECGI Announces Definitive Agreement to Acquire East West Pharma Group
The company came into the news cycle yesterday after it announced that it had signed a Definitive Agreement with regards to the acquisition of East West Pharma Group Inc, a company incorporate in Wyoming. East West Pharma boasts of highly experienced employees and special equipment, which made it into one of the leaders in the CBD extraction and product development space.
It could well prove to be a major new acquisition for ECGI and hence, it now remains to be seen if the stock can manage to make an upward move in the coming days. The acquisition from ECGI represents a significant shift as it tries to get into the cannabis manufacturing, concentrates and extraction marketplaces worth as much as $2.7 billion.
The agreement will also give ECGI control of the specialized equipment that belongs to East West Pharma. The equipment had been custom built so as to help in the processing of huge volumes of industrial hemp. It can process up to 500 pounds an hour.