NxGen Brands Inc. (OTC:NXGB) Stock Takes a Hit: Here is Why

Considering the announcement made by the company on Wednesday, it is quite likely that the NxGen Brands Inc. (OTC:NXGB) stock will be on the radars of investors today. The company announced that a second brand had been added to its previously announced Letter of Intent, which made the acquisition a source of higher revenues from the same terms of the deal.

NxGen Brands announced that the brands had generated unaudited revenues to the tune of more than $1.25 for 2023. Additionally, a new contract in the Pacific region came online in December 2023, which would grow non-United States revenues at a breakneck pace.

Additionally, it was noted in the news release that the protein belonging to the brands had been scheduled to get back on stream in the first fiscal quarter. That would also lead to a major jump in revenues, which NxGen Brands believes could be as high as 25%. The company made such an estimate on the basis of the fact that the protein market had stabilized in recent times at a global level. That would enable consumers of protein powder products to re-start their usual buying habits.

The Chief Executive Officer of NxGen Brands, Joseph Lawanson, spoke about the development yesterday. He stated that the company believed that the combination of the two brands could contribute more than $2 million to the top line in 2024. He went on to add that such levels of revenue, both in growth and in real terms, had not been seen from NxGen Brands in the past.

Lawanson added that he was excited about the journey that was aimed at boosting shareholder value in 2024 and beyond. The company had also reached an agreement with former officers with regards to the purchase and retirement of 14 million shares.