Better For You Wellness Inc. (OTC:BFYW) Stock Jumps 8% After Asset Purchase Agreement

Investors are known for looking into stocks that may have recorded gains on the previous trading day, and by that token, the Better For You Wellness Inc. (OTC:BFYW) stock could well be one to watch today. The company saw its stock clock gains of as much as 8% following a key announcement on Tuesday.

Better for You announced that it had been successful in closing the asset purchasing agreement pertaining to the acquisition of The Ideation Lab LLC and its subsidiary units. In the news release, the company noted that it was a transformative deal that marked a major new milestone for Better For You Wellness. It would help the company get into a stronger position in the fast-growing $1.5 trillion wellness industry.

Ian James, CEO of BFYW, expressed his enthusiasm about the milestone, stating, “This is a pivotal day for BFYW and its shareholders. The closure of The Ideation Lab deal secures perpetual rights to divisions and brands, including the exceptional Stephen James Curated Coffee Collection brand. We appreciate the diligence of our Independent Board, especially our Audit Committee Chair, David Deming, who played a crucial role in this process.” James continued, “We foresee significant synergies in functional beverage, mental wellness, snacks, personal care, and pet lifestyle lines in retail and hospitality. This transaction holds tremendous potential to enhance shareholder value and achieve profitability in the near future.”

The Ideation Lab was established in 2019 and registered in Ohio. It had been founded as a progressive wellness company with the aim of being at the forefront of innovations in the industry. It was noted yesterday that The Ideation Lab was involved in a range of segments, starting from women’s mental wellness products and pet lifestyles to functional beverages and skincare. The acquisition was made by Better For You Wellness in a deal worth $3 million. It was conducted in the company’s Series A Preferred Shares, and 300,000 of those, priced at $0.01 each, were issued.

On October 11, Better For You Wellness made an announcement about the acquisition. At the time, the company provided further information after the MIPA (Membership Interest Purchase Agreement) had already been executed with The Ideation Lab LLC and its subsidiary units.

The company announced at the time that it had decided to issue Series A Preferred Shares to complete the transaction. Such a move had been preferred in order to reduce dilution for the company’s shareholders.