Strategic Rare Earth Metals, Inc. (OTCMKTS:SREH) reported acquisition of Silverstone Auto Group based in Texas. The recent acquisition is stated as accretive for the company right from the first year and is estimated to generate revenue of more than $5million in FY2015. It is one of the measures initiated by the company to boost shareholder value. Also, the management announced that there will be no toxic funding or reverse stock split in the near future.
Strategic Rare Earth stated that previously the stock price was under-valued compared to revenue and price per earnings. The latest purchase will help the company to achieve fair value higher than current market price. Bill Schaefer who is the CEO and President of Strategic Rare said that the acquisition places the company and its valued shareholders in a position to record maximum long-term growth.
On April 20, Strategic Rare reported that it taking a number of initiatives to enhance value for its shareholders. At that time, the company confirmed about a major acquisition plan and also talked about a new business direction to be announced later in the week. Along with the acquisition and other development plans, it intends to change its name and ticker symbol in near future.
The up listing
Strategic Rare wants to transform into a fully reporting company that will help it to uplist on a OTCQB platform to provide more transparency to SREH shareholders and investors. It informed that it is working on a new website and expects to launch it in near term. All the measures are taken in order to position itself well in the industry.
In last trading session, the stock price of Strategic Rare Earth Metals declined 27.27% to close the trading session at $0.00080. The drop came at a massive share volume of 47.70 million almost double compared to the average share volume of 16.32 million.