Nutritional Growth Solutions Ltd (ASX: NGS) shares jumped by more than 9% this morning after the company released two major announcements to the market. In early trade, the Nutritional Growth share price surged as high as 30 cents before retreating to its current level of 28 cents at the time of writing.
In its first announcement, Nutritional Growth reported it has obtained a trademark for its Healthy Height brand from the Korean Intellectual Property Office (KIPO). The second release announced that the company has signed an agreement to acquire the Kidzshake brand in the United States.
Why is this good news for the Nutritional Growth share price?
The Nutritional Growth share price has been on the move today with investors clearly pleased at the company’s latest endeavours. So what exactly was announced?
Kidzshake
Nutritional Growth reported that it has acquired the Kidzshake brand from the US-based company, Ausmerica Wellness Services LLC, for a total consideration of US$150,000.
The agreement involves acquiring all of Kidzshake’s business and associated assets, including inventory, and intellectual property, as well as existing contracts.
Kidzshake is a nutritional shake for kids, and was founded by an Australian doctor living in the US.
Nutritional Growth says the potential market for Kidzshake is significant, with about a third of children in the US using dietary supplements.
Kidzshake has also created a vegan, plant-based nutritional shake, targeting a growing category in US. According to Nutritional Growth, the plant-based food market in the US is growing at 18%, outpacing even the growth of organic, gluten-free, and non-GMO products.
Korean trademark
Nutritional Growth says the trademark received from the Korean Government relates to its nutritional shake, Healthy Height.
The company reported that the new trademark will strengthen its position for potential partnership discussions in South Korea.
South Korea is said to be the biggest consumer of pediatric nutritional supplements globally, with up to 54% of children aged 1 to 6 years using these products.
About the Nutritional Growth share price in 2020
The Nutritional Growth share price has fallen by nearly 10% this year, with a 52-week high of 38 cents and a low of 25.5 cents.
The company currently commands a market capitalisation of $13 million.
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Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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