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AllStar Health Brands (OTCMKTS:ALST) Stock Falls 8% After Acquisition News

Ash K , , , ,

Shares of AllStar Health Brands (OTCMKTS:ALST) were under pressure in the previous session.

Market Stats

On Thursday, ALST stock fell 8.45% to  $0.0065 with more than 100K shares, compared to its average volume of 450K shares. The stock moved within a range of $0.0062 – 0.0065 after opening trading at $0.0062.

AllStar to Acquire 25% of Metaverse Technology Company Advent Galaxy Inc., Signs LOI

AllStar Health Brands (OTCMKTS:ALST) has announced on March 17, 2022 about the signing of a Letter of Intent with Advent Galaxy Inc, which is a division of TGI SOLAR POWER GROUP Inc. The LOI is toward the planned purchase of 25% of all the issued and outstanding shares of Advent Galaxy.

As per the transaction, ALST is set to purchase 25% of all common shares of Advent Galaxy by issuing Preferred Series B shares of ALST at a rate of $10.00 per share in an aggregate number equal to 1,500,000 and an aggregate purchase price of $15,000,000, so it makes value of Advent Galaxy Inc. – $60MM.

ALST has an additional option of 2 years to acquire extra $25% of Advent Galaxy for a period of Two Years for $20MM or $75MM enterprise valuation or simply stated Preferred Series B shares of ALST priced at the rate of $10.00 per share in an aggregate number equal to 2,000,000 and an aggregate purchase price of $20,000,000.

Once the transaction is complete, ALST is set to assume management and operational responsibilities in some capacity. It might also close a non-brokered $5 million private placement post-closing, after final agreements are in place (details are still pending).

Key Quote

“We are excited about this opportunity to expand into new technologies – including the metaverse and virtual and augmented reality – that stand to define a new era in how people interact with each other and with the economy,” noted Pete Wanner, CEO of AllStar Health Brands. “Advent Galaxy has already made important strides in this arena, and we look forward to partnering with the Advent team and helping to build on that success.”

Traders Corner

ALST stock is trading below the 20-Day and 50-Day Moving averages of $0.0083 and $0.0097 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0187.