Over the course of the past two weeks, Very Good Food Company Inc (OTCMKTS:VRYYF) has seen its stock make significant gains and it continued on Wednesday.
After having recorded gains of as much as 125% over the previous two weeks, the VRYYF stock gained 11.32% today.
Major Triggers
The continued rally in the stock is primarily due to a couple of developments that took place last month. Back in October, the company announced that it had been given the approval to commence trading on the OTCQB. Later on in the month, VRYYF announced a key distribution partnership that boosted the stock further. Here is a closer look at both of those developments.
The listing on the OTCQB is a significant development for the company. The exchange in question is managed by the OTC Markets Group and is primarily meant for upcoming companies in the United States and beyond. The stock started trading on the OTCQB on October 14.
Mitchell Scott, the Chief Executive Officer of VRYYF stated that since the brand has become better known globally, the stock has attracted significant attention from investors in the United States. The listing will also allow the company to get exposure to a bigger pool of investors.
The more important announcement came about later on in October when VRYYF announced a distribution partnership with UNFI Canada. The partnership in question is for products under The Very Good Butchers brand. UNFI is one of the biggest food distributors in North America and projects yearly sales of more than $21 billion.
In addition to that, VRYYF has also managed to expand the distribution points for products from The Very Good Butchers to as many as 275. That reflects a rise of 34% from the number of distribution points in July. These are major developments and hence, the rally in the stock has not come as a total surprise.
Disclaimer: We hold no position in VRYYF