Last week, NOHO (OTC: DRNK) made a key announcement with regards to the sale of some of its intellectual properties to Sibennac Inc.
Since then the NOHO stock has performed admirably and continued on Monday as well. Yesterday, the stock soared by as high as 57.5% as investors continued to pile onto it in a big way. In light of such gains, it could be vital for investors to take a closer look at the agreement reached by NOHO.
Sibennac is going to acquire some of the proprietary products and trademarks owned by NOHO. However, it should be noted that the two companies have also reached an agreement with regard to cross-purchasing transactions. Sibennac will issue NOHO with warrants in its company worth as much as $2.8 million. Those warrants are, in turn, going to go to NOHO shareholders in the form of dividends. Hence, it is easy to see why the stock soared on Monday.