Shares of the Nisun International Enterprise Development Group Co., Ltd (NISN) stock rallied in the current market trading session today on January 7, 2022. NISN stock price saw a push of 3.59% to reach $2.88 a share at the time of this writing. The stock was also green in the previous trading session and went up by 12.55% at closing. Let’s understand the reason behind this rise.
What’s Happening?
Nisun International recently announced that the company has entered into the supply chain agreement Henan Shiwugu Co., Ltd. The company will help Henan Shiwugu in broadening its market share under this agreement. Nisun will follow its policy to import grain products under this agreement, providing procurement and other services. Investors in response to this news showed interest in NISN stock which resulted in the increase in per-share price.
In order to improve the efficiency and optimize resource integration in the supply chain of Shiwugu, Nisun will completely mobilize and integrate market resources. The company will support the Shiwugu by importing grains as well as agricultural products from the overseas market. The company will fully rely on its sufficient capital resources in this whole process. The company will continue to support small and medium-size enterprises through its tailored services.
Previously Development of NISN stock
The company previously on December 31, 2021, did announce the cooperation supply chain agreement with Henan Huangchuan Biandijin AGRI-FOOD., LTD. Under the agreement, the former will provide procurement services for grain and oil products.
The company in December also signed the strategic cooperation agreement with ichuan Wanglianxing Agricultural Technology Development Co., Ltd. and Henan Xingyue Communication Technology Co., Ltd in order to cooperate in the supply chain trade of agricultural products.
Offering of NISN stock
On December 15, 2021, Nisun International did announce that it has closed the underwritten public offering of class A common shares and warrants to buy class A common shares. The company offered 19.5 million class A shares of NISN stock which resulted in $77 million gross proceeds before underwriter discounts and offering related expenses. Nisun International will use the net proceeds working capital, business opportunities as well as for general corporate purposes.
Wrap Up
The sentiment is positive for NISN stock in the stock market so far. It would be interesting to see how long this stock will continue to rise as the stock market is highly unpredictable. It is better to analyze the company’s fundamentals and future development before making any investment decision.
