Astika Holdings Inc. (OTC:ASKH) Stock Rallies 90% In a Week: But Why?
Investors are almost always on the lookout for stocks that may have gained strong momentum, and that is understandable given the fact that many stocks that gain momentum may garner significant attention from the rest of the market. If you are currently looking into such stocks, then it may be a good move to consider taking a look at Astika Holdings Inc. (OTC:ASKH), which saw its stock gather strong momentum on Thursday.
The company was in the news yesterday after it announced that it had inked a letter of initial agreement (LOI) with the privately owned Hong Kong-based company China Industrial Waste Management Holding Co. Ltd. (CIWM). As per the terms of the agreement between the two parties, CIWM would become a fully owned subsidiary unit of Astika.
As per the terms of the LOI, the two companies had a period of 30 days within which they would need to complete due diligence and complete the transaction. The short time that had been stipulated for the completion of the transaction was a function of the long-standing history between the two companies and also the presence of shared executives.
CIWM operates as a conglomerate, and its operations are mainly concentrated on waste remediation and mining on the Chinese mainland. Once the acquisition is complete, the two companies will work on raising fresh capital to the tune of $60 million globally. The fresh funds would help finance the expanded operations in the critical spaces in which CIWM is involved.
In the news release yesterday, Astika Chairman Funan Deng noted that the deal required a lot of planning and legwork for both parties over the course of the past year or so. He went on to note that the work being conducted by CIWM was vital for not only China but also for the rest of the world. Hence, it was imperative for Astika to be right on the money regarding the terms of the transaction.
The latest acquisition agreed to by the company is only the latest in a steady flow of mergers and acquisitions activities that it has conducted in recent times. The company had completed the acquisitions of two other entities as of March 20 this year. One of those was Nantong Pinlina International Trade Company, a foreign-invested enterprise that had been registered as per the laws in Nantong, China. The other acquisition was that of Gaoxing LLC, a California limited liability company that had been formed as a Chinese-American joint venture. It has been registered with the Chinese Consulate located in Los Angeles, California.
On January 27, the company announced that it had raised the number of board members to two. The company revealed that Deng Funan had been appointed to its board and made chairman of the board of directors at Astika Holdings. It was a significant development for the company and one that may have far-reaching consequences. It may also be a good time, in light of the latest acquisition, for investors to keep an eye on Astika stock.
