Branded Legacy (OTC:BLEG) Stock Soars On Buyback Announcement
The majority of investors are almost always on the lookout for companies that are involved in innovative pursuits, and it takes significant efforts in research to unearth such companies. A company that fits the bill is Branded Legacy (OTC:BLEG), which is regarded as a pioneering force in the wellness and biotech industries. The company was in focus on Tuesday after it made a significant new announcement. Branded Legacy announced that it had made the strategic decision to buy back and then retire as many as 1,000 Preferred Class D shares.
It was a major new announcement from the company since it would protect against a conversion ratio to the tune of 1 preferred class D share for 100 unrestricted common shares. The company noted in its press release that the move was a major step towards boosting value for shareholders and making the share structure simpler by stopping the entry of those shares into the open market. The retirement and conversion process had been managed by the legal and finance teams at Branded Legacy.
The company had put in place an anti-dilution strategy, and the latest move was consistent with that. The move was aimed at making the Branded Legacy stock more appealing and accessible to existing as well as potential investors in the company. The company also stated in yesterday’s news release that the entire move was going to be carried out smoothly so that the transition was transparent for the shareholders.
However, that was not all. The company also revealed that it was on track to retire more than 700 million restricted common shares. That action was another illustration of the commitment of Branded Legacy to cutting down its share count and boosting the intrinsic value of its stock. Additionally, the company was also in the process of restructuring its classes of preferred shares so as to consolidate into three categories. The restructuring had been planned to boost the ongoing efforts of Branded Legacy to bring about transparent and clear corporate governance. The Chief Executive Officer of the company, David Oswald, noted that the move was aimed at reinforcing value for the shareholders through the prevention of dilution.
On November 16, the company announced that it had inked a letter of intent with a Florida-based company for the acquisition of $6 million worth of assets and facility space. The name of the company was revealed by Branded Legacy. It was noted that the agreement would go through a due diligence process totaling 40 days.
Once the agreement went into effect, it would signify a major move in the strategic expansion of the company. It was noted that it would add as much as $6 million in the form of co-packing, refinement, and other assets to its portfolio. The acquisition also included a large-scale extraction unit based on CO2, a synthesis unit certified by C1D1, a refinement lab, and a pair of completely automated gummy manufacturing units.
