What made Guardion Health stock double on Wednesday?

Guardion Health Sciences Inc (NASDAQ: GHSI) is up nearly 100% this morning after Doctor’s Best Inc agreed to buy its Activ Nutritional LLC.

Could Guardion Health stock climb any further?

Doctor’s Best is paying $17.2 million to acquire the said unit of Guardion Health that owns the Viactiv brand and business.

Note that Viactiv made up 97% of the revenue the Nasdaq-listed firm generated in the first nine months of 2023. Robert Weingarten – chairman of Guardion Health Sciences Inc said in a press release today:

The Company’s Board of Directors unanimously believes that this transaction is in the best interest of the Company’s stockholders.

Maxim Group analyst Anthony Vendetti currently has a “buy” rating on Guardion Health stock. His $12 price target suggests another 16% upside on top of today’s rally.

Deal will close by the end of June 2024

Guardion Health Sciences expects the Viactiv transaction to complete before the second half of this year provided that it satisfies customary closing conditions including shareholders’ approval.

Note that Doctor’s Best is a wholly-owned subsidiary of Kingdomway USA Corp. According to its chief executive Gale Bensussen:

This transaction underscores our commitment to invest in strategically aligned opportunities. The strength and performance of Viactiv will allow us to expand our global presence.

Guardion Health stock rallied after reporting a 25% growth in its third-quarter revenue on year-over-year basis in November. Ahead of Wednesday, however, the health sciences company had pared back that entire gain.