Oriental Rise Holdings Ltd (NASDAQ:ORIS) shares are trending on Wednesday.
Check out the current price of ORIS stock here.
Shares of the vertically integrated company, covering a significant portion of the tea value chain, surged 47.54% to $1.80 in after-hours trading on Tuesday following a strategic acquisition announcement.
Non-Binding Acquisition Agreement
Oriental Rise Holdings announced a nonbinding letter of intent to acquire a controlling stake in Hubei Daguan Tea Industry Group Co. Ltd., a leading tea producer in Yingshan County, Hubei Province.
The China-based integrated tea supplier says the proposed transaction aligns closely with its long-term strategic objectives.
The transaction remains subject to due diligence, definitive agreements, and customary closing conditions, according to Oriental Rise Holdings.
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Strategic Value Proposition
Daguan Tea also runs vertically integrated operations that cover cultivation, large-scale processing, and brand management. The company has extensive plantations and automated production facilities and produces premium teas, bulk teas, and export-grade products, with well-established international distribution channels.
Management Commentary
Dezhi Liu, CEO of Oriental Rise Holdings, said, “Securing upstream resources and production capacity is fundamental to improving long-term competitiveness and earnings quality in the tea industry.”
The acquisition targets improved supply chain control, enhanced product differentiation, and sustainable long-term value creation for shareholders.
Trading Metrics, Technical Analysis
Oriental Rise Holdings has a relative strength index (RSI) of 23.71.
The stock has fallen sharply over the past 12 months, dropping 95.7%, underscoring its long-term weakness.
Oriental Rise Holdings has a market capitalization of $2.24 million, with a 52-week high of $57 and a 52-week low of $1.14.
Trading just about 0.14% above its 52-week low of $1.14, the stock remains near its lows, suggesting that any potential rally could face strong resistance from sellers.
Price Action: According to Benzinga Pro data, Oriental Rise Holdings closed at $1.22, down 6.01% on Tuesday.
Benzinga’s Edge Stock Rankings indicates ORIS stock has a negative price trend across all time frames. Track the performance of other players in this segment.
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Photo Courtesy: Arsenii Palivoda on Shutterstock.com
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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