BrewBilt (OTCPK:BBRW) Stock Climbs on Buyback And Dividend Reinvestment Program
The craft beer, cannabis, and hemp industries have taken off at a remarkable rate over the course of the past half a decade or so. However, in order for those industries to grow, there needs to be the presence of specialist companies that help in the manufacturing process, and that is where companies like BrewBilt (OTCPK:BBRW) come in.
An Immediate Boost
BrewBilt, which is based out of Northern California, is involved in custom designing and integrating distillation, fermentation and processing systems meant for craft beers, hemp and cannabis industries. The company claims to use ‘best in class’ American components for its products.
The company was founded back in 2014 and has become an important player in the space that it occupies. This morning, the BrewBilt stock is in focus in the markets on the back of a recent development. This morning BrewBilt announced that it had received the necessary approval by way of which it is going to use its own revenues to buy back shares worth as much as $1.5 million.
It is a major development for the shareholders, and there was a positive reaction in the market with regards to the development. The company’s shares rallied by as much as 20% on the back of the announcement, and it remains to be seen if it can continue to add to its gains later on today.
However, that is not all. In addition to the buyback announcement, BrewBilt also announced a dividend reinvestment program for its investors. If investors opt for it, then their declared dividend is going to be reinvested into the company’s common stock. It is an important step since BrewBilt will not only be able to return cash to its shareholders but also undo some of the dilutions that had been caused due to the merger that took place in the first quarter this year.
The company also released a press release to this effect this morning, and the Chief Executive Officer of the company, Jef Lewis also made a statement. He stated that after having delivered relatively strong second-quarter performance despite the coronavirus pandemic, the company is now putting its money where its mouth is. Investors could do well to keep an eye on the developments surrounding BrewBilt over the coming days.
However, that is not all. Earlier on in June, the company had announced that it had successfully completed five new breweries, and the work was going to bring in revenues to the tune of $2 million. On the other hand, it also announced that it had completed a pair of cold water extraction systems for cannabis companies. The latter projects are going to bring in revenues worth $500,000.
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