NF Energy Saving Corp (NASDAQ: BIMI) is making a run for the top in the market this morning, trading on gains of nearly 180% early on. The gains come after the company announced the completion of a key merger. Here’s what’s going on:
BIMI Stock Is Climbing On Acquisition News!
In a press release issued early this morning, NF Energy Saving announced that it completed the acquisition of Boqi Zhengji Pharmacy Chain Co., Ltd. Boqi Zhengji Pharmacy Chain is a pharmacy company with more than 300 stores.
This retail footprint is comprised of stores owned directly as wel as franchises. Each pharmacy sells about 6,000 different types of drugs, more than 600 of which are under exclusivity agreements.
At the moment, the pharmacy has more than 10,000 members. Each member of the pharmacy spends between $425 and $705 per year. In exchange for the acquisition of the company, bimi paid a total of $5,643,181 and has agreed to issue up to 1.5 million shares of common stock.
In a statement, Mr. Tiewei Song, CEO at BIMI, had the following to offer:
We are pleased to complete the acquisition of Boqi Zhengji Pharmacy as promised. The acquisition is a substantial milestone for us to shift to the health industry while the market is booming. We look forward to continuously enhancing Boqi Zhengji Pharmacy’s existing client relationships, and exploring partnership opportunities with new organizations.
3 Reasons Investors Are So Excited About YUMA
The acquisition is great news as it will greatly expand the value of the company. However, acquisitions happen all the time, and few lead to gains in multiples. What’s the deal? Why are investors so excited? Here are three reasons:
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