Green Star Products Inc. (OTC:GSPI) Stock Surges After Acquisition News

The news about a new acquisition often results in considerable attention for a stock, and hence, it is likely that the Green Star Products Inc. (OTC:GSPI) stock could be in focus this morning. The company announced yesterday that it had inked a letter of intent pertaining to the acquisition of the leading fitness chalk e-commerce retailer, Primo Chalk.

In the news release, it was revealed that Primo Chalk was involved in supplying workout chalk to a range of athletes engaged in a number of sports. The company also noted that the acquisition was also a demonstration of the strong foresight of Green Star Products’ management to build a strong basis for its entry into the fitness chalk retail space. Over the course of the past 15 years, Primo Chalk has managed to build up a strong online customer following thanks to its proprietary anti-bacterial natural grip chalk. The company also conducts competitions, expos, and fundraisers, all of which have been instrumental in brand recognition. Green Star Products stated that the value of Primo Chalk was in sync with its own.

However, that was not all. It was also revealed that in the fall of 2024, Primo Chalk products would also be made available on the shelves of Walmart. Initially, the retail giant had approved the product to be made available in 300 stores, but eventually it was decided that the product could be successful in more than 780 stores.

The strategic move would result in the products reaching a large pool of customers and in the creation of stronger brand loyalty for Primo Chalk. However, it was also noted that in order to support such a significant distribution deal, Green Star Products would need to raise capital. The extra capital would be used for the purpose of boosting production and other associated expenses.