Grove (NASDAQ:GRVI) Stock Takes a Sever Hit: Should You Panic?

Grove (NASDAQ:GRVI) stock has lost 27% since its successful IPO. The company offered 2.2 million shares in its IPO at $5 per share. The company’s shares started trading on the Nasdaq Exchange under ticker GRVI.

The IPO gave underwriters 45 days option to buy another 330,000 additional shares at the IPO price. Grove deals with creating, manufacturing, selling, and marketing raw materials, consumer products, and white label products that contain hemp CBD. As a result, the company sells several consumer products, including botanical, pet care, functional food, and beauty care sectors.

At the end of last month, the company announced a non-bonding letter of intent to buy Vitamedical as it seeks to foray into the nutraceutical space. Although the parties are expected to engage in good faith on a definitive binding agreement, there is no guarantee that they will have an agreement or any acquisition could materialize. So in the coming weeks, GRVI is a stock to watch.

Market Reaction:

On Monday, GRVI stock slid 9% at $4.06 with more than 428k shares, compared to its average volume of 3.07 million shares. The stock has moved within a range of $3.8627 – 4.5800 after opening the trade at $4.42. Over the past 52-week, the stock has been trading within a range of $3.8627 – 9.3700.