Jupiter Wellness (NASDAQ:JUPW) Stock Continues to Slump: Time to Buy?
Leading developer of skin care therapeutics and treatments Jupiter Wellness (NASDAQ:JUPW) on July 22, 2021 announced multi-year agreement with Rigour International as the sole authorized distributor for Mainland China and non-exclusive distributor for Korea, Hong Kong, and South East Asian markets.
The agreement will give Rigour International the right to distribute and sell Canisun Sunscreen Products, Comfort Cream, Fit CBD, Radiant Relief and Temple Tonic. With main operational center in Zhengzhou China, Rigour is leader in cosmetics, skincare,beverages, novel dietary supplements as well as wellness product development.
Various distribution channels as well as partnership networks will enable Rigour to cover over 300 million consumers based in Asia. The company’s management and sales team is experienced and has over two decades in promoting wellness for promoting innovative consumer products from the US into Asia.
Brian John, CEO, Jupiter Wellness, said that Jupiter Wellness partnership with Rigour is valuable for maximising reach of products and looks forward on growth in the Chinese marketplace.
The firm also announced pricing of an underwritten public offering of 11,066,258 shares of common stock, par value $0.001 per share as well as 540,884 shares of Common Stock to be issued by certain selling stockholders. The Company Warrants will be exercisable instantly on issuance with exercise price of 2.79 per share and expire on fifth anniversary. Gross proceeds from the Offering, before reducing underwriting discounts and commissions will be $32.5 million.
Market Reaction:
On Wednesday, JUPW stock fell 15.45% at $2.79 with more than 1.36 million shares, compared to its average volume of 147k shares. The stock has moved within a range of $2.7200 – 3.2600 after opening the trade at $3.25. Over the past 52-week, the stock has been trading within a range of $2.7200 – 8.8800. The stock is down another 24% in the pre-market session.