Ballantyne Strong Inc. (NYSE: BTN) soared by 24.69% on Tuesday, which equated to a gain of $0.8 from its previous close. The Ballantyne Strong stock hit its lowest point during the trading day at $3.24, while it peaked at $4.19 before the end of the day.
Barchart data indicates BTN stock closed the last trading session at $4.04, with a volume of 16.04 million. A subsidiary of a portfolio company acquired assets resulting in a surge of the BTN stock.
Which assets were acquired?
Ballantyne Strong is a diversified holding company operating and investing across a number of industries. BTN’s Strong Entertainment segment offers cinema exhibitors, theme parks, and other entertainment-related markets its largest premium screen provider in the U.S.
BTN also provides technical support services, as well as related products and services. Having partnered with Google Ventures for a series of investments totaling $13 million, BTN is now a preferred investor in private company Firefly Systems, Inc., which recently started rolling out a mobile ad network on private ride-share and taxi fleets.
GreenFirst Forest Products Inc, one of Ballantyne Strong’s portfolio companies, announced Monday that it has entered into a binding asset purchase agreement.
A wholly-owned subsidiary of GreenFirst has agreed to acquire a portfolio of forest products and paper products from affiliated companies of Rayonier Advanced Materials Inc. As indicated in GreenFirst’s announcement, the purchased assets include six lumber mills in Ontario, Québec, and Béarn, as well as one newsprint facility located in Kapuskasing, Ontario.
What will be achieved?
These assets have the ability to produce 755 MMFbm of products each year, including wood chips, SPF lumber, and other by-products. The newsprint mill has a capacity of 205,000 MT/year. Based on publicly available industry rankings, the recently purchased assets rank among the top ten lumber producers in Canada.