According to a previous announcement on February 28th, 2022, the shareholders of Standard Dental Labs Inc. have voted unanimously in favor of accepting an offer from Costas, Inc. to acquire its assets. The parties have entered into a formal acquisition agreement, which is expected to close in the coming days.
Market Reaction
On Friday, CSSI stock surged 34% to $0.0209 with 100K shares, compared to its average volume of 90K shares. The stock moved within a range of $0.0209 – 0.0210 after opening trade at $0.0210.
Costas, Inc. Closes Agreement To Acquire Assets of Standard Dental Labs Inc.
Once the acquisition is complete, it will mark the foray of Costas Inc. into the dental lab industry, paving the way for future acquisitions and consolidations in the industry. The company was incorporated in Wyoming in 2019, and controlled by Mr. Jonas Brooks, the company’s CEO. It has developed branding and elaborate business plans to facilitate the acquisition of small to medium sized dental labs, of which there are thousands in the United States.
Standard Dental Labs Inc. is on the lookout for dental lab owners interested in selling their labs over the recent months. The recently acquired consolidation model and ready to launch branding, should help the company identify several suitable acquisition targets in the coming weeks and months. The ultimate objective is to become one of the largest operators in the industry.
Costas CEO, James Brooks, stated that acquisition is the quickest way to grow in this industry, especially in the public sector, which remains untapped.
Traders Review
CSSI stock is trading below the 20-Day and 50-Day Moving averages of $0.0267 and $0.0244 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0211.
