ZA Group (OTCMKTS:ZAAG) is best known for making acquisitions in the emerging industries and is particularly focussed on self-sustainable farms and direct to consumer apparel.
On Wednesday, ZAAG stock slumped 25% to $0.0003 with 31.17 million shares, compared to its average volume of 102.79 million shares. The stock moved within a range of $0.0003 – 0.0004 after opening trade at $0.0004.
ZA Group, Inc. (ZAAG), Announces Production Facility Expansion to Accommodate Increasing Vertical Farming System Orders
Yesterday, the company made a major announcement but it proved to be a dampener for investors and the stock suffered from a massive selloff to end the day with a decline of as much as 25%. The company was in the news yesterday after it announced that it had been successful in picking up a 60% stake in the company E-Roots Manufacturing Inc. The acquisition had been made with the view to further speed up its goals with regards to growth in 2022.
E-Roots Manufacturing had recently expanded its facility in order to be in a position to fulfil additional orders. In addition to that, it is necessary to note that the facility in question is also situated on the busiest transportation corridor in Western Canada. Hence, it is an acquisition that could eventually prove to be a positive one for ZA Group as it tries to generate considerable growth in 2022. At this point it may be a good idea to keep the stock in your watch lists and watch out for signs of recovery.
ZAAG’s President, John Morgan comments with, “I am excited and pleased to see the growing interest on our vertical growing systems. We are now positioned to fulfill the many orders we are anticipating on receiving deposits to commence manufacturing. A few of the orders that we are anticipating include multiple farms in an Indian tribe within the U.S. and Australia. The orders in cusps of closing do not include the over 10,000 inquiries we have yet commenced to reach out to due to our current large orders being made. In regards to our two March venial system orders, we are still on track on delivering within the next few weeks. I look forward on sharing more updates as we progress.”
ZAAG stock is trading below the 20-Day and 50-Day Moving averages of $0.0004 and $0.0005 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0045.