PURE Bioscience Inc. (OTC: PURE) Stock Falls Despite Distribution Agreement
It was a tough day in the markets for PURE Bioscience Inc. (OTC: PURE) shareholders as the stock came under selling pressure and went down by 11% amidst a selloff. In light of the development, it may be a good time to take a look into the actual announcement made by the company.
New Distribution Agreement
On Tuesday, PURE Bioscience hit the newswires after it announced the signing of a distribution agreement spanning several years with Madison Chemical Co. The agreement had been made for the sales and purchase of SDC (silver dihydrogen citrate) products from PURE Bioscience under special terms.
In the news release, the company expressed its excitement at the agreement and described Madison Chemical as an established player in the cleaning and sanitation solutions supplying space meant for the food processing industry.
The Boost
Although the stock fell, it should be noted that PURE Bioscience asserted that the partnership would help in boosting the company’s distribution capacities. It was also in alignment with the overarching goal of the company to supply the food processing industry with high-quality products and solutions.
Madison boasts of a large customer base and considerable expertise in the industry, which is why it would provide PURE Bioscience with greater opportunities to provide its technology to a larger pool of customers far more effectively.
Management Quote
“We are happy to partner with Madison Chemical,” said Tim Steffensmeier, VP of Sales at PURE. “This collaboration enhances our distribution capabilities and aligns our commitment to delivering top-tier products and unique solutions to the food processing sector. With Madison’s extensive expertise and loyal customer base, this partnership allows for greater reach and increased opportunities to offer our game-changing technology to the food industry.”
Technicals
| +/- EMA(20) | 0.0704 (-0.57%) |
| +/- SMA(50) | 0.0701 (-0.14%) |
| +/- SMA(200) | 0.0823 (-14.95%) |
| 5-Day Perf. | +4.48% |
| 1-Month Perf. | -20.27% |
| 3-Month Perf. | -1.69% |
| 6-Month Perf. | -12.5% |
| YTD Perf. | -46.03% |
| 1-Year Perf. | -30.69% |
| RSI(14) | 49.52 |
| ATR(14) | 0.01 |
| ADX(14) | 13.56 |
| Beta (5Y) | -0.31 |