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Following a significant new announcement from Exxe Group Inc (OTCMKTS:AXXA) on Wednesday, the company’s stock experienced significant action. The trading volume went up 10 times the average 60-day trading volume yesterday. In light of such a day of action, it could be the right time to now take a look at the actual announcement a bit more closely.
The company announced yesterday that it had managed to finalize an agreement with regard to the acquisition of Serenity Lakeside Resort located in Phuket, Thailand. As per the terms of the agreement, Exxe would get a 50% stake in the company right now but as per the schedule, it would get total ownership of the asset in 2024. It is a prime holiday asset since Phuket is regarded as one of the most desirable holiday destinations globally.
It is particularly significant since the acquisition marked the company’s first move into the highly competitive hospitality industry in the Southeast Asian region. It could also be considered to be the most high-profile resort transaction that had been completed by the company thus far.
However, it is also necessary to add in this regard that the company is contemplating more such transactions in the near term. The property in question is a four-star resort, which is located in a prime locality and also offers luxury amenities to guests. It is going to be interesting to see if the trading volume that was seen in the stock yesterday leads to any major upward move or not.