Cannabis has been the center of attention in penny stocks lately. Medical cannabis is being legalized almost everywhere in North America, and recreational cannabis will be legal across Canada soon.
Other sectors seem to be in the shadow of the marijuana hype, but it doesn’t mean that companies aren’t making big moves. While blockchain stocks may be falling rapidly, medical stocks seem to be rising right along with cannabis.
Let’s take a closer look at a medical penny stock and the reason why it traded so high today on the TSXV and OTC.
Protech Home Medical Corp. (TSXV:PHM) (OTC:PHMZF)
Protech Home Medical is based out of Wilder, Kentucky. The medical company rents and provides in-home monitoring equipment to patients within the US. Incorporated back in 1993, Patient Home Monitoring Corp changed its name to Protech Home Medical in May of this year.
This medical penny stock offers power mobility equipment, INR self-testing equipment, CPAP and BiPAP machines, and oxygen concentrators.
Over a week ago, Protech Home Medical Corp announced that it has acquired Coastal Med Tech Inc. Coastal Med Tech is the leader in respiratory services in the State of Maine. This acquisition is expected to increase its annual revenue by $4 million.
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“This type of tuck-in asset purchase is an example of the types of strategic acquisitions we’re going to continue to pursue,” said Greg Crawford, CEO of PHM. “The acquisition is immediately accretive, increasing revenue and EBITDA as we use our regional expertise and infrastructure to achieve revenue and profit growth through our integration platform. These asset purchases are an easy way to increase market penetration in our existing markets for marginal costs and will continue to be one of our core strategies to augment our growth.”
PHM Penny Stock Movement
According to Yahoo Finance, PHM closed trading on the TSXV at $0.17 CAD a share, up $0.02 CAD (13.33%). The PHMZF penny stock closed on the OTC at $0.135 USD a share, up $0.017 (14.02%).
Featured Image: Depositphotos/© kalinovsky
