The stock of New You Inc [OTCPINK: NWYU] was soaring at the previous closing with a rise of 90.54% to conclude the weekend session at $0.1128. The New You stock saw a trading volume of 774.69K on the day, against an average volume of 306K in the past 30 days. The NWYU stock traded between $0.0500 and $1.4900 during the last 52-week period. NWYU recently signed a letter of intent that fueled the stock rally for the past week.
What was the deal?
Currently, NEWYOU LLC is the only subsidiary of New You, a publicly-traded company. CEO Ray Grimm Jr. founded New You to be a leader in the marketer and distribution of premium CBD products. Founder of six health and wellness companies with over $50 million in sales between them in their first five years, Grimm has built a visionary entrepreneurial brand that has thrived in a crowded industry. In the months to come, New You management will focus on diversification strategies for business models and identify which products should be added next.
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In its recent SEC filing on March 12, 2021, New You unveiled the signing of a Letter of Intent (LOI) with a Wyoming corporation ST Brands.
It was agreed by NWYU and ST that they will embark on a merger, share exchange, or similar deal. NWYU will acquire all of the outstanding and issued capital stock in ST at the time of closing pursuant to the letter of intent. ST’s shareholders will receive newly issued shares of preferred stock from NWYU in exchange for ST’s shares. A shareholder with stock in ST has the right to convert to the cumulative amount of 90% of NWYU’s issued and outstanding shares of common stock.
In connection with the Closing, ST will make available to NWYU any additional funding required to pay off its outstanding convertible notes and other obligations up to an aggregate of not more than $300,000. The terms for this additional funding shall be decided by ST as agreed upon with NWYU, which shall not be unreasonably delayed.
What will be final outcome?
The current business, assets, and operations of New You Inc [NWYU], which are operated through New You, LLC, will continue after the Closing to be owned and controlled by NWYU. ST and NWYU shall execute a definitive agreement acceptable to them and the shareholders of ST at the Closing or before it.