Health Advance Rallies Over 125% on Acquisition News
Wednesday, September 28, 2016
The nutraceuticals industry has seen phenomenal growth over the last few years, mainly because of the growing demand for healthy products. According to a report published by Transparency Market Research earlier this year, the worldwide nutraceuticals market is expected to grow at a CAGR of 7.3% between 2015 and 2021.
In 2015, the worldwide nutraceuticals market was valued at $182.6 billion, according to the report. By the end of 2021, the market is expected to reach $278.95 billion. The market for nutraceuticals can be divided into four segments. These include functional foods, functional beverages, dietary supplements, and personal care. The functional foods market is the most dominant segment within the nutraceutical space. The segment is expected to grow at a CAGR of 7.1% between 2015 and 2021. The growth rate is expected to be topped by only the functional beverages segment, according to the Transparency Market Research.
The outlook for the nutraceutical industry augurs well for Health Advance Inc. (OTCPK:HADV), which today made an acquisition in the nutraceutical space. Shares of the Las Vegas, Nevada-based company soared on the news.
Health Advance shares are soaring in trading today after the company announced that it has entered into a non-binding Letter of Intent to acquire 100% interest in Hantian Labs Limited, a private UK corporation (Hereinafter referred to as "Hantian"). The acquisition is subject to due diligence by both parties, and the negotiation and execution of a definitive agreement. The agreement will be subject to certain conditions including HADV issuing 15,000,000 shares of the Company in exchange for all the issued and outstanding shares in Hantian.
Health Advance expects to enter into a Definitive Agreement by October 15, 2016. Once completed, HADV will also control 99% of JT Hantian LLC which represents the revenue arm of Hantian Labs. Currently, JT Hantian has sales in excess of $1,000,000 within the calendar year.
Christian Diesveld, Managing Director at Health Advance, said that this is a very exciting time for Hantian which is looking forward to expanding their product line in the coming months. Diesveld further said that due to an aging global population, the desire to preserve youth, and the numerous advancements made in reversing the natural process of aging, the world market for anti-aging products is growing at a rapid rate.
At last check, Health Advance shares were trading 107.14% higher at $0.145 on volume of 1.05 million, which is substantially above the daily average volume of just 740.
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