Plant-Based Micro-Cap ABVE Sees Retail Following Explode 18x On Stocktwits

Plant-based food ingredient supplier Above Food Ingredients Inc. (ABVE) is taking the market by storm. The stock price surged a whopping 20% to $1.56 on Friday, while retail following skyrocketed, fueled by a strategic acquisition.

According to data from Stocktwits, ABVE’s followers surged by a staggering 1,780% this past week, making it the most newly-watched stock on the platform late Friday morning.

The catalyst for this excitement? Above Food's acquisition of The Redwood Group's Specialty Crop Food Ingredient Division for $34 million. The Redwood Group is a major player in the high-growth human and pet food markets, supplying pulses, pulse ingredients, and specialty crops.

CEO Lionel Kambeitz said, "This acquisition marks a major milestone... strengthens our international footprint as our first U.S. physical facilities while also significantly growing our market share of the high-growth pet food category."

Retail investors on Stocktwits echoed this optimism, with many expressing excitement about the acquisition's potential.

Above Food recently announced revenue for the fiscal year ending January 31, 2024, reaching $273 million, representing a compound annual growth rate of 34% over the past four years.

However, it's crucial to note that it’s still in the investment phase, with losses for fiscal year 2024 ballooning to $4.40 million from $0.90 million a year earlier. This indicates the company is currently prioritizing growth over immediate profitability.

Above Food, a Canadian company, went public just last month through a merger with a Special Purpose Acquisition Company called Bite Acquisition Corp.

While there are concerns about profitability, ABVE’s retail watchers for now are clearly excited about the company's acquisition and strong revenue growth story.