VSUL stock is climbing up since the beginning of October, when the company filed a letter of intend to make its next acquisition. Now, Visualant intends to acquire a Seattle based research and development laboratory that has developed its Spectral Pattern Matching (“SPM”) technology under a contact with Visualant. The acquisition will raise the intangible assets of the Visualant, but more important for investors were probably the optimistic projections of the management for up to $50 million in revenues over the next two years.
Maybe still inspired by the press release from Tuesday that the previously acquired new subsidiary that brought the first revenues for Visualant will presents its products at the IFMA World Workplace 2010 Conference at the end of the month, and additionally popularized by the trading alerts sent also on Tuesday, VSUL stock kept the upward move yesterday. On a much more consolidated market, the share price increased by 4.48%, closed at $0.70 and reached a new yearly top at $0.72.
It looks like the details of the deal could not disturb the appreciation. According to the initial agreement, Visualant will pay for the acquisition with 1 million shares of common stock (valued at $0.20 each), $250,000 in cash ($100,000 payable at the closing). Also, a promissory note in the amount of $65,000 owed to the founder of the company that shall be acquired should be repaid at closing.
The closing is expected to occur at the end of November. At the end of June this year, Visualant had a working capital deficit of $2.5 million and around $111,000 in cash.
