Strategic Rare Earth Metals, Inc. (OTCMKTS:SREH) announced that it bought Silverstone Auto Group based in Texas. The latest acquisition immediately improves the profitability outlook for the company. It is expected to result in additional $5 million in revenue for fiscal 2015. Bill Schaefer, the CEO and President said that the acquisition of a profitable firm like Silverstone places the company and its shareholders in a position to record maximum long term growth.

The measures

Strategic acquisition of Silverstone is another instance that reflects its commitment to enhance shareholder value. The company further stated that there is no reverse stock split seen in the near future. Moreover, there is no probability of toxic funding that can negatively affect the shareholders value. With the new acquisition, Strategic Rare is under-valued relative to its price per earnings and revenues. Based on the new figures, the management feels the company would be fairly valued at considerably higher than its prevailing market price.

The measures

Few days ago, Strategic Rare announced that it taking several measures to increase shareholder value. It indicated about the acquisition to Silverstone during the same release. The press release also said that the company will commence to get a new stock ticker as it intends to change the name of company. As Strategic plans to get a new business direction, it will take necessary steps to transform into a fully reporting firm as required by Sections 13 and 15(d) of the SEC with an objective of getting an up listing to OTCQB status. It will offer improved transparency to investors as well as shareholders. Schaefer added that he is very confident and excited with the recent developments.

In the last trading session, the stock price of Strategic Rare declined more than 47% to close the trading session at $0.00110. The decline came at a share volume of 143.92 million.