Aquastar Holdings, Inc.(NDA) (PINK:RPPR) rose 42% on a volume of 129 million. This is more than 10 times higher than the 90-day average of the day. The increased interest in the stock yesterday was markedly a signal that something happened with RPPR.
In fact, the stock rose on the news that RPPR has signed a definitive agreement to acquire SUTIMCo. The acquisition will cost RPPR $4 million of proffered stock and $5.5 million in cash to be paid within 2 years.
The transformation of the announce LOI for the acquisition of SUTIMCo into a definitive agreement is a good thing. But the bad thing is that SUTIMCo is still listed as an inactive company on the internet and there has been no official explanation of this fact.
The other question is how a development stage company like RPPR with only$92 in assets will secure $9 million for the acquisition. With this issues in mind investors must estimate to what extent the company is posed to justifiy their expectations.