Why Is CNEY Stock Rising Today?

• CN Energy stated that acquiring Blessing Logistics would help expand its footprint in the energy sector.
• The company added that if the deal goes through, it plans to use Blessing Logistics as a platform to pursue oil trading and related upstream investment opportunities.
• CN Energy is a China-based company that specializes in producing recyclable activated carbon from raw carbon materials.

CN Energy Group Inc. (CNEY) shares soared more than 23% in Thursday’s pre-market trade after the company announced that it has entered into a framework agreement with Blessing Logistics regarding a potential acquisition.

CN Energy stated in its announcement that the two parties have entered into a definitive share purchase agreement. Following this, CN Energy has agreed to acquire approximately 82% of Blessing’s equity interests.

The deal’s value is currently expected to be about $2 million, CN Energy said.

Retail sentiment on Stocktwits around CN Energy was in the ‘extremely bullish’ territory, with message volumes at ‘extremely high’ levels at the time of writing.

Why Does CNEY Want To Acquire Blessing?

CN Energy stated that acquiring Blessing Logistics would help expand its footprint in the energy sector while providing a boost to its business development strategy in the North American market.

“If the proposed transaction is completed, we believe it could represent an important step in CNEY's global strategic expansion. Blessing Logistics' comprehensive compliance structure, export licenses, and trading qualifications could provide a foundation for our entry into the energy market,” said CN Energy’s interim CEO, Wenhua Liu.

The company added that if the deal goes through, it plans to use Blessing Logistics as a platform to pursue oil trading and related upstream investment opportunities.

What Does CNEY Do?

CN Energy is a China-based company that specializes in producing recyclable activated carbon from raw carbon materials. The company says that its products and services have been used by food and beverage producers, industrial and pharmaceutical manufacturers, as well as environmental protection enterprises.

CN Energy also develops customizable robotics products, automation tools, and related software solutions for clients in North America.

CNEY stock is up 34% year-to-date, but down 88% over the past 12 months.

Also See: Tesla’s Robotaxi Rival Waymo Faces Fresh NHTSA Probe Following Pedestrian Incident Near School

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