Bimi International Medical Inc (NASDAQ: BIMI) stock price surged 64.9% despite not making any announcements today as investor interest in the stock remained high.
Unlike many other stocks that have rallied higher today driven by news of the new coronavirus variant spreading in South Africa, we cannot attribute the same to BIMI stock.
There is no direct manner in which the medical supplies company could benefit from rising COVID-19 cases. Instead, it appears the stock is benefitting from high investor interest that has been in place since the start of the week.
BIMI shares soared 89.1% after releasing its Q3 revenues on Tuesday, November 16, 2021, which triggered investor interest in the company that has not diminished to date.
The medical supplies company has made strategic acquisitions in the past few months that have positioned it well within its home market of China.
Earlier this month, BIMI signed an MoU to acquire 100% in Bengbu Mali Hospital for $3 per share. The company intends to benefit from the hospital’s obstetrics and gynaecology departments that serve about 30,000 patients each year.
The acquisition also diversifies its income streams allowing it to enter a whole new segment within the medical industry.
BIMI also acquired Chongqing Zhuoda Pharmaceutical, a wholesale supplier of pharmaceuticals and medical equipment, for a total of $11.62 million in a transaction that involved the issuance of new shares.
The company intends to issue 2.2 million new shares worth $3 each to pay $6.6 million of the total purchase costs. The remaining $4.8 million is subject to post-closing adjustments based on the pharmacy’s performance in 2022 and 2023.
Interestingly, BIMI can issue new shares worth $3 to facilitate its recent purchases despite its shares trading at or below $1 for the past several months. This shows that investors see the company’s stock as relatively undervalued.
Investors interested in owning BIMI shares may find current prices quite attractive since the firm seems pretty undervalued. However, those looking for better prices may get them on a future pullback.
BIMI had given up some of their gains at writing.
*This is not investment advice. Always do your due diligence before making investment decisions.
Bimi International stock price.
Bimi International stock price surged 64.91% to trade at $1.1582, rising from its closing price of $0.7023.
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