Shares of Guardion Health Sciences skyrocketed in premarket trading on Wednesday following the news that the clinical nutrition company has reached an agreement to sell its Activ Nutritional unit for an impressive sum of $17.2 million.
After a thorough review of strategic options, including the possibility of selling the entire company or just the renowned Viactiv brand, Guardion decided that divesting its Activ Nutritional unit is the best course of action. The sale to Xiamen Kingdomway Group, a subsidiary of China’s prominent healthcare conglomerate, marks a significant milestone for Guardion.
For the first nine months of 2023, Viactiv has been responsible for a staggering 97% of Guardion’s total revenue. This showcases the immense popularity and success of the Viactiv dietary supplements business.
The transaction is expected to close by the end of June, allowing Guardion to swiftly complete the sale. The current market capitalization of Guardion stands at approximately $6.57 million, reflecting investor confidence in this development.
This news has immensely influenced Guardion’s stock performance. During premarket trading, Guardion shares surged by an astonishing 94% to reach $10.01.
