Ritter Pharmaceuticals Inc (NASDAQ: RTTR) is having an incredibly strong start to the trading session this morning after announcing news. The company will be moving forward with a strategic alternatives exploration, leading to gains of more than 50% in its stock price as we head toward mid-day on Wednesday.
RTTR Stock Climbs On Strategic Alternatives Exploration
Ritter Pharmaceuticals issued a press release early this morning, announcing that it will be moving forward with a strategic alternatives review. The company said that it has engaged A.G.P./Alliance Global Partners as its financial advisor through the process.
As is just about always the case in strategic alternative explorations, the company said that the goal here is to enhance shareholder value.
In the release, RTTR said that potential alternatives include but are not limited to acquisitions, mergers, reverse mergers, or other business combinations. The company may also consider the sale of assets and licensing or other strategic transactions.
RTTR said that it will not be discussing or disclosing further developments during the process. Once the Board of Directors has approved a specific action or otherwise determined that further disclosure is appropriate, investors will receive an update.
Why Investors Are So Excited
At the end of the day, when companies announce that they are exploring strategic alternatives, these announcements tend to lead to big runs in value. After all, the goal of these alternatives is to increase shareholder value, generally regarding a struggling company. Here’s why investors are so happy in this particular case.
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