Akers Biosciences (AKER) Stock Soars on Back of Potential Cannabis Collaboration
On a day like today, when the entire stock market is under pressure, you must have done something right to see your stock jump. And Akers Biosciences (AKER) definitely did something right, at least if you ask investors.
Akers is widening its borders to include cannabis as one of its sectors. This is creating some heat in the stock market — AKER shares are up by 42% as a result of the news. The South Jersey company announced the update Monday morning and it seems investors are hooked. The stock closed Friday at $1.23 and Monday morning traded for $2.19.
Akers uses in vitro diagnostic technology to quickly get health information, which ultimately helps make accurate diagnoses and provide mass screening solutions without using expensive equipment that take a long time to get results. Members of AKER’s board recently met with a number of cannabis industries at a Las Vegas conference, called MJBizCon, which helped bring company executives closer to the move. AKER brought New York law firm Feurstein Kulick LLP on as a legal advisor to the board as the company moves forward into the new territory known as cannabis.
Chief Executive Officer Howard R. Yeaton commented on the development: “The Board of Directors and management of the Company are considering a number of exciting opportunities for business combinations including within the cannabis industry in which we believe opportunities exist for significant value creation. At the same time, we remain focused on our current business operations and customers and look forward to reporting further developments when appropriate.”
Though the news is exciting, there’s no use in getting high yet. Management notes it can’t provide any assurance as to whether this exploration will turn into a true business transaction or not.
Akers Bio develops, manufactures, and supplies rapid screening and testing products designed to deliver quicker and more cost-effective healthcare information to healthcare providers and consumers.