Stock News Update: China Xiangtai Food Co. Ltd. (NASDAQ:PLIN)

China Xiangtai Food Co. Ltd. (NASDAQ:PLIN) stock observed trading -70.50% off 52-week high price. On the other end, the stock has been noted 59.46% away from low price over the last 52-weeks. The stock disclosed a move of -29.93% away from 50 day moving average and -52.96% away from 200 day moving average. Moving closer, we can see that shares have been trading -0.02% off 20-day moving average. It has market cap of $45.88M.

On April 3, 2020, China Xiangtai Food Co. Ltd. (NASDAQ:PLIN) an emerging growth company primarily engaged in pork processing in China, revealed that the Company, through its subsidiary Chongqing Jinghuangtai Enterprise Management Consulting Co., Ltd., entered into a definitive agreement (the Agreement) to acquire a 51% controlling interest in Chongqing Ji Mao Cang Feed Co., Ltd. (JMC). JMC is a private enterprise specializing in feed raw material sales and providing feed formula solutions, and the acquisition is expected to help the Company expand its market in Southwest China.

As previously announced, the Company entered into a non-binding Memorandum of Understanding (the MOU) to acquire 51% controlling interest in JMC, one of the leading feed suppliers in southwest China. JMC has more than 200 customers in the farm industry and nearly 100 customers in the feed production industry. In 2019, JMC sold more than 200,000 tons of soybean meal, exceeding $70,000,000 USD (RMB 500 million) in sales. With the Company’s revenue of $102,545,152 in its last fiscal year, PLIN expects this acquisition to increase its gross revenue by 70% on an annual basis.

Pursuant to the Agreement, subject to certain milestones to be achieved by JMC, the Company agreed to issue to JMC a total of 2,000,000 shares of the Company’s ordinary share for consideration equal to $7,420,000 over the next two years.

The China based company China Xiangtai Food Co., Ltd. moved with change of -3.80% to $1.77 with the total traded volume of 1696230 shares in recent session versus to an average volume of 155.19K. The stock was observed in the 5 days activity at -3.80%. The one month performance of stock was -24.03%. PLIN’s shares are at -53.42% for the quarter is now at -54.62% since this point in 2018. The average volatility for the week and month was at 23.59% and 31.73% respectively. There are 25.92M shares outstanding and 8.79M shares are floated in market.

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