Easton Pharmaceuticals Inc (OTCMKTS:EAPH) shares were up nearly 20% after the company announced that it will be acquiring iBliss Inc.
Easton Pharmaceuticals Inc (OTCMKTS:EAPH) shares were up 19.21% to $0.0391 and flat in after-hours trading. Share prices have been trading in a 52-week range of $0.00 to $0.04. The company has a market cap of $39.61 million at 923.73 million shares outstanding.
Easton Pharmaceuticals Inc is a development-stage company engaged in various pharmaceutical sectors and others industries. It has a transdermal delivery technology called Viorra Delivery Matrix or VDM, which is incorporated in a line of therapeutic over-the-counter products.
Aside from that, the company also owns topically-delivered drugs and therapeutic/cosmetic healthcare products focused on cancer and other health problems geared towards female sexual dysfunction, wound healing, pain, motion sickness and other conditions. These products are in various stages of commercialization, including Nauseasol, which is a motion sickness gel; Skin Renou HA, which is an anti-aging wrinkle cream; Kenestrin Gel, which is a is a pain relief gel; Viorra, which serves as an aid to the relief of female sexual arousal disorder ; XILIVE, which is an early-stage cancer drug, and FSAD drug, which includes a water-based complex polymer matrix.
This week, Easton Pharmaceuticals Inc shared that it has signed a letter of intent to acquire 100% of revenue producing vaporizer manufacturer iBliss Inc of Canada. iBliss is a major vaporizer and e-liquids manufacturer that is enjoying strong international sales projected to conservatively reach and surpass $15,000,000 per year fairly quickly. With these sales, the company is able to make healthy margins in excess of 40%. It has sales in North America and recently adding several international markets in Europe, the Middle East and Russia which has it on track to reach $15,000,000 in sales.
We are very excited to be entering into this Agreement with Easton. With the support of Easton’s management, we will be able to continue our success and rapidly expand our sales internationally and launch our consumer health products through our e-liquids” stated iBliss President, Hung Tran.
Under this acquisition, iBliss will operate as a wholly owned subsidiary of Easton Pharmaceuticals and will be separate from its other business segments such it’s woman’s diagnostics, treatment and natural health products. After all, Easton Pharmaceuticals has a distribution agreement with multi-national pharmaceutical company Gedeon Richter and its Mexican subsidiary company Gedeon Richter Mexico S.A.P.I. de C.V. The companies are still expected to iron out more details of the acquisition in the coming weeks but the letter of intent marks the first step in their partnership.
Shares of Easton Pharmaceuticals have been on a tear since October last year, as volumes and investor interest picked up. This marked a strong upside breakout from the consolidation for the most part of the year before the bullish run ensued. For now, though, price could still make a pullback to the nearby $0.03 mark before heading further north.
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