ATWEC Technologies Inc. (OTC: ATWT) Stock Gains After Acquisition of Prograde Excavating
ATWEC Technologies Inc. (OTC: ATWT), which does business as The Birch Co., saw its stock make a notable move on Thursday and ended the day with gains of 7%.
The Birch Co. Announces Acquisition of Prograde Excavating
The company announced yesterday that it had inked a non-binding Letter of Intent pertaining to the acquisition of Prograde Excavating. Prograde was described as an expert provider of excavation services based out of Tulsa, Oklahoma. It was also noted that the acquisition target was a specialist in land clearing, commercial site development, demolition services, and residential excavation.
With decades of experience, Prograde did not only specialize in moving earth but reshaping landscapes with a keen eye on strategic planning. It held significant experience in projects of all sizes and land development work.
The Rationale
The acquisition from The Birch Co. would be a strategic one owing to the fact that the excavation contractor market was growing and also provided strong synergies due to the company’s home building offerings in the Sunbelt. More importantly, the acquisition would also bring in more than $2 million in the form of yearly recurring revenues.
The company would complete the 100% acquisition of Prograde’s assets and business, and there was expectation that it would be completed by the fourth fiscal quarter of 2024. It would be accretive in the first fiscal quarter of 2025.
CEO Comment
“This acquisition of an established excavation contractor in a growth market is highly synergistic with our modern home building solutions in the Sunbelt region,” said Josh Ploch, Chief Executive Officer of The Birch Co. “We will build on the company’s achievements, enabling us to vertically integrate our residential and commercial development capabilities into other markets. The acquisition will also facilitate expansion of our customer base into demolition and land clearing verticals that we are not servicing today.
Technicals
| +/- EMA(20) | 0.0013 (-7.69%) |
| +/- SMA(50) | 0.0015 (-20.00%) |
| +/- SMA(200) | 0.0015 (-20.00%) |
| 5-Day Perf. | +9.09% |
| 1-Month Perf. | -36.84% |
| 3-Month Perf. | -67.57% |
| 6-Month Perf. | +100% |
| YTD Perf. | +100% |
| 1-Year Perf. | +20% |
| RSI(14) | 46.14 |
| ATR(14) | – |
| ADX(14) | 11.08 |
| Beta (5Y) | 0.54 |