Full Alliance Group Inc (OTCMKTS:FAGI) is the latest explosion on the OTC, with shares launching from around $0.02/share to as much as $0.51/share in just 5 days. The move was spurred by news of the company’s acquisition of the Grupo Richard holdings last week. The news first broke in the form of a press release that was only titled “announcement” and contained almost no text, with a link to a PDF. The stock only moved a little on this.
But then the company put the press release back out with the headline event captured in the title and no links in the release, and shares positively exploded higher. According to the release, the company was pleased to “announce that after re-engaging Grupo Richard over the past several weeks, the acquisition of all subsidiaries, technology and real estate holdings associated with Grupo Richard was approved, at which point the assets were transferred into escrow.”
Full Alliance Group Inc (OTCMKTS:FAGI) formerly Beverly Hills Group Inc., is a multi-faceted holding company with diverse investments in Mexico and North America, in multiple industries providing investment capital, best practices and best in class management to grow businesses to their full and peak potential.
The Company’s strategy is to grow through strategic acquisitions and partnering with existing distribution operations of Native American tribes specialized in the cultivation, production and retail distribution of tobacco sales using a Tribe-to-Tribe marketing concept. Management plans to expand the operation to Tribes across the U.S.A. and expand on existing Tribal networks.
According to company materials, “Full Alliance Group Inc. is a multi-faceted company with current diverse investments in the United States, focusing primarily on organic agriculture, acquisitions, and CBD-based nutraceuticals. Once these strategic acquisitions are procured and integrated into the long-term objectives of the company, Full Alliance Group will provide investment capital, modern business practices and best-in-class management to cultivate and mature these companies to their greatest potential.”
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As discussed above, this stock went bonkers on the upside last week in direct response to the company’s announcement that it has moved to acquire Grupo Richard, including all assets, all subsidiaries, technology and real estate holdings associated with Grupo Richard.
According to the company’s release, the assets which are now part of Full Alliance Group Inc., include an extensive real estate portfolio professionally appraised with a net equity of over $40 million dollars USD, and the following companies: Operadora de Servicios GRMS de RI de CV, Grupo Internacional Richard S de RI de CV, Grupo Richard y Lange SAPI de CV SA de CV, and Asesores en Comercio ON de Mexico.
According to management, “FAGI executives are quite excited with the development potential of these assets, and already had discussions with investors from Asia and Central America prepared to assist with the growth of these new subsidiaries.”
The chart shows just under 2200% added to share values of the name over the past week of action, a bounce that has taken root amid largely bearish action over the larger time frame. This is emblematic of the stock. FAGI is a stock who’s past is littered with sudden rips. Furthermore, the name has benefitted from a jump in recent trading volume to the tune of exceeding 910% beyond what we have been seeing over the larger time frame.
This should not be overlooked given the stock’s tiny trading float of 4.3M shares. It’s something the veterans know to key on: with such a tight trading float, this kind of ramping interest can force a supply-shock squeeze.
Earning a current market cap value of $6.9M, FAGI has been a holding company with very little on the books: virtually no cash and very little debt. The company is pre-revenue at this point. As more color becomes clear on the name, we will review the situation and update our take. Sign-up for continuing coverage on shares of $FAGI stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $FAGI, either long or short, and we have not been compensated for this article.