Here is Why Shares of PAO Group Soars 260%
One of the major gainers on Tuesday was the stock of alternative patient care treatments company PAO Group, Inc. (OTCMKTS:PAOG). On Tuesday, the stock made a massive move after the company made some major announcements. The PAO stock soared by as much as 260% on Tuesday, and considering the gains made by the stock, it could be worthwhile for investors to take a closer look at the company.
PAO Group is not only involved in alternative patient care but also in medical cannabis. The company has investments in related companies and also owns certain subsidiaries. It uses that network to develop, sell, and distribute high-quality medical cannabis to patients.
On Tuesday, PAO announced that it has successfully completed a management buyout after the senior management managed to acquire a majority stake in the company. The move was led by the Chief Executive Officer of the company James C. DiPrima and a team of managers at PAO.
The company’s management team acquired the preferred stock that grants majority voting rights from a third party. It is a significant development for the company since it will give the management more freedom to pursue PAO’s goals, and the reaction to the news among investors was understandable. It remains to be seen if the stock can add to its gains through the rest of the week.
It is almost certain that the stock is likely going to be on the radars of investors. The company also notified that DiPrima is going to stay on as the CEO of PAO. In addition to that, the management is also aiming to boost the medical cannabis business and is apparently all set to complete two key acquisitions in the upcoming weeks. One of the acquisitions is that of NCM Biotech, which is involved in medical research and is involved in developing medical cannabis products thanks to its patented extraction process for cannabis.
The other acquisition is going to involve the cannabis cultivation arm of the company Puration Inc. Puration has developed a strong cannabis cultivation operation and recently even moved to its operations to a new location. These are key acquisitions that could help PAO in significantly strengthening its medical cannabis business, and it is something that investors could keep their eye on.
Completed The Acquisition Of Rising Biosciences Inc
The company has been working on acquisitions for quite some time, and back in January 2019, it completed the acquisition of Rising Biosciences Inc. After the transfer of all assets, PAO also acquired RSB Management, which is involved in the business management space in the cannabis sector. It was another highly important move from the move and resulted in a change of direction. The company’s medical cannabis strategy is going to be watched closely by market participants over the next few months.
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