ZA Group Inc (OTCMKTS:ZAAG) Stock Takes a Hit: Company Announces Large-Scale Acquisition

When a stock falls sharply, it is perhaps a good move from investors to work out if the fall is going to continue or if there is going to be a correction. Then they can proceed accordingly. This bring us to the subject of the ZA Group Inc (OTCMKTS:ZAAG) stock which suffered from a significant selloff yesterday and went down by as much as 28% as a consequence.

Market Stats

On Thursday, ZAAG stock slumped 28.57% to $0.0005 with more than 292.86 million shares, compared to its average volume of 113.53 million shares. The stock moved within a range of $0.0005 – 0.0007 after opening trading at $0.0007.

ZA Group Announces Large-Scale Acquisition of E-Roots Systems

The company was actually in the news on Thursday after it announced that it had been successfully in finally closing the transaction for acquiring the company E-Roots Systems.

It was a significant development for the company considering the fact that E-Roots is involved in the sustainable food material manufacturing space. It is involved in the production of goods and equipment that are meant for growing food. The company had been working on the closure of the deal for several weeks and it marks a major move for the company.

However, it was clear to see that the move did not get the sort of enthusiasm from investors as was expected and the stock suffered from a strong selloff. It remains to be seen if the stock can bounce back over the coming days.

Traders Corner

ZAAG stock is trading below the 20-Day and 50-Day Moving averages of $0.0008 and $0.0010 respectively. Moreover, the stock is trading below the 20-Day moving average of $0.0077.