Why is BYND Cannasoft (BCAN) stock rising today?

Highlights:

The BCAN stock rocketed more than 267 per cent on Monday.

It recently signed a share acquisition deal on September 18.

The BCAN stock jumped around 220 per cent in the last 30 days at its current trading price.

The stock of BYND Cannasoft Enterprises Inc. (NASDAQ: BCAN) appeared to be one of the closely watched stocks on Monday, September 19, as seen by the jump in its price in the morning.

The BCAN stock skyrocketed more than 267 per cent in the pre-market hours on Monday after closing at over eight per cent down in the previous session.

So what could have triggered the recent rally of the Canadian cannabis-focused software firm? Let's explore the recent developments of the company with Kalkine Media®.

Why is it rising?

Among the most recent developments of BYND Cannasoft Enterprises, the company announced its plans to acquire an Israel-based company on September 18. According to the announcement, the Vancouver, Canada-based company had signed a share purchase deal for acquiring the full ownership of Zigi Carmel Initiatives & Investments Ltd.

Zigi Carmel had the patent-pending intellectual property for a therapeutic device named the EZ-G device. EZ-G is a unique device that utilizes low concentrations of Cannabidiols. This therapeutic is primarily used for treating specific health conditions in women.

As per the terms and conditions of the share acquiring deal, BYND Cannasoft would issue to Zigi Carmel's owner of 7.92 million common stocks for US$ 4.735 per share, depending on the transaction conclusion by October 10 this year.

In addition, the company would be paying US$ 100,000 to cover the legal expenses of the deal. Certain customary closing conditions would be reviewed before the closing of the deal. Notably, the Canada-based cannabis/software firm anticipates closing the deal in September.

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Bottom line:

The BCAN stock was priced at US$ 15.26 at 7:47 am ET on September 19, noting a jump of 267.71 per cent from its previous close of US$ 4.17. In the last session, it closed at 8.55 per cent down.

At its current trading price, the company's stock skyrocketed over 180 per cent since May 2022, advancing over 220 per cent in the last 30 days. However, the RSI of BYND Cannasoft Enterprises was about 32 during writing, suggesting that the stock could be highly volatile at the moment.

Despite the recent gains, investors should focus on the other factors and risks associated with small-cap stocks before investing. Notably, the Canadian company had a market cap of US$ 446.04 million.

Rupam Roy

Author

Rupam Roy - Analyst
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After completing his graduation in English literature, Rupam briefly worked in content management and digital marketing. At Kalkine, he writes on the US markets. His hobbies include composing songs and music....
Mridul Gogoi

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Mridul Gogoi - Senior writer and editor
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Mridul has worked as a senior writer and editor in the corporate sector for over 15 years. He wrote on various subjects, such as travel, e-commerce, healthcare, technology, and sports. At Kalkine, he writes on stock markets, companies, earnings, equi...
Mridul Gogoi

Reviewer

Mridul Gogoi - Senior writer and editor
156 Posts
Mridul has worked as a senior writer and editor in the corporate sector for over 15 years. He wrote on various subjects, such as travel, e-commerce, healthcare, technology, and sports. At Kalkine, he writes on stock markets, companies, earnings, equi...