Novo Integrated Sciences (NASDAQ:NVOS) Stock Soars After Business Updates
On Wednesday, there were a number of stocks that had managed to make notable moves, but one that may be a standout performer is Novo Integrated Sciences (NASDAQ:NVOS). The stock had come into sharp focus yesterday among investors and ended up with gains of as much as 56% for the day.
In light of such significant gains, it may be a good time for investors to consider taking a closer look at some of the new developments in the company and making their minds up about the stock. One of the important developments with regard to Novo Integrated in recent times was the announcement that it was going to enter into a joint venture with Farm 7 Group. The two companies would collaborate on the financing, development, and administration of the Kenya Agricultural Cooperative Project.
The above-mentioned joint venture would be in place for 30 years and is expected to generate annual revenues of as much as $350 million. The profits from the venture would be distributed in a 25%–75% structure and Novo Integrated would get 25%. While the news about the joint venture was significant, it ought to be noted that the company had also provided a range of business updates that investors needed to be aware of.
Two of those are the share purchase agreement with the firm SwagCheck and the securities purchase agreement with RG Consulting Group LLC. However, that is not all. The board of directors at the company had also been contemplating a strategic review, and one of the measures that had been discussed was a stock repurchase initiative. The company also revealed recently that it had received funding commitments to the tune of $40 million for the development of joint ventures focused on senior citizen care. Due to the accumulation of a series of recent developments, the attention of investors may have eventually fallen on Novo Integrated stock. At one point yesterday, the trading volume in the stock had surpassed 40 million shares. The average daily trading volume in the stock was only 9 million shares prior to yesterday.
It could be a good move for investors to take a closer look at the joint venture that the company created with Canadian company Farm 7 Group. It went into the joint venture on August 15. The project would be centered on the agriculture sector in Kenya.
The final contracts revealed that the food-based agricultural crops would take up as much as 350 hectares of agricultural land. The Chief Executive Officer and the Chairman of the Board of Novo Integrated spoke about the joint venture as well. He noted that Farm 7 had secured a guarantee through buyer contracts for the delivery of as much as 1.6 trillion metric tons of food-based agricultural produce. He also suggested that the project would also have a major financial impact on both organizations. Novo would be responsible for providing the venture with structured finance solutions and administrative support.
