Edleun Group, Inc. (CVE:EDU) (PINK:EDLNF) stock is stuck nearly motionless as traders await to see the results of the ongoing acquisitions.
Traders are giving up on making profits from EDU as the stock price continues being stuck around 99 cents. The stock added 19% this Monday after if gapped up in reaction to the news and merely moved ever since. The trading volumes have faded, indicating upcoming consolidation on a gradual decline, which has been observed before.
Since the company is about to change their capital structure, traders are likely to wait with their bets before they can re-evaluate the fundamentals.
The company announced on Tuesday they will be acquiring five Learning & Care centers in Alberta, British Columbia. The company has already entered into definitive agreements.
Three operating child care centers with all the underlying real estate will be bought for $5.3 million from a single seller. The centers, that include 266 licensed spaces, are located in Calgary and Okotoks. One more center located in Airdie will be bought for $900 thousand and caries 70 licensed spaces. The last one can be found in Vernon, British Columbia. This one will cost $300 thousand and carries 85 licensed childcare spaces.
This acquisition will be paid for in cash and should close in the near future. As a result, the company’s portfolio of licensed spaces will increase by 12.5%. Edleun has agreements to acquire, redevelop or build 5 more centers, which will bring their total ownership to 39 centers and 3,801 licensed spaces.
