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Trxade Health (NASDAQ:MEDS) stock is soaring higher on Tuesday after the U.S. health services IT company announced a major asset sale.
According to a filing with the Securities and Exchange Commission (SEC), wholly-owned subsidiary Trxade, Inc. is going to sell virtually all of its assets to Micro Merchant Systems. This subsidiary operates the company’s web-based market platform for trading among healthcare buyers and sellers.
Micro Merchant Systems has agreed to pay $22.5 million in cash for the assets owned by Trxade, Inc. There’s also the possibility of it paying another $7.5 million to Trxade Health. That will happen if it gets $1.6 million or more from certain third parties or actions through the assets acquired from Trxade, Inc.
Unveiling the Impact on MEDS Stock Today
Today’s asset sale news brings with it increased trading activity to Trxade Health shares this morning. That has more than 4.4 million shares of MEDS stock changing hands as of this writing. To put that number in perspective, the company’s daily average trading volume is closer to 15,000 shares.
MEDS stock is up 229.6% as of Tuesday morning. That’s great news for investors considering the stock was down 14.2% year-to-date when markets last closed.
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Further Stock Market Developments for Tuesday
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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