There were some stocks that made strong moves on Thursday, and one of those was that of NxGen Brands Inc. (OTC:NXGB), which clocked gains of 40% for the day. The company came on the radar of investors after it announced that it had inked a letter of intent with regards to the acquisition of one of the fastest-growing nutritional supplement brands in the United States.
The company revealed that, as per the terms of the agreement, NxGen had been asked to draw up the final documents. It was further noted that there was an expectation that the documents would be completed and executed by both entities during December 2023. The acquisition is expected to be closed before the end of 2023 and would constitute the company’s second one for the year. The news release noted that the acquisition target possibly had $1 million in the form of unaudited revenues and was profitable.
The Chief Executive Officer of NxGen, Joseph Lawanson, spoke about the acquisition target as well. He stated that the brand was distinct from the company’s other acquisition, STORM Lifestyles, since it targeted a completely different market. That market consisted of some of the biggest buyers in the industry. Lawanson also stated that the brand was so differentiated that it would allow the company to take its marketing efforts to the maximum level.
He noted that it would all become apparent once NxGen made the announcement pertaining to the complete details of the transaction. The CEO concluded by saying that he was highly excited to take the new brand to the next stage. On another note, NxGen also announced yesterday that it had made an agreement with its former officers to purchase and then retire approximately 14 million shares. 40 million shares that had been issued to Lawanson would not have restrictions removed until 2026.