Shares of JX Luxventure (NASDAQ:LLL) are soaring today, following the news that its subsidiary JX Hainan has entered into a $60 million deal with Chongqing E-Pet Technology. JX Luxventure operates as a service provider that delivers a variety of services and goods, such as menswear, merchandise and tourism. Chongqing E-Pet is “one of the major operators of online cross-border pet food shopping platform in China.” As a result of the deal, LLL stock is up over 200% today at the time of writing. In addition, LLL stock reached a new 52-week high of $7.16 this afternoon.
Why Is LLL Stock Up 200% Today?
Under the terms of the deal, Chongqing E-Pet will buy up to $60 million of cross-border pet food from JX Hainan. The purchased pet food will then be distributed on Chongqing E-Pet’s platform.
“This cooperation shows the ever-growing demand for the cross-border pet foods in China and opens a new category of cross border goods for JX Luxventure,” explained JX Luxventure CEO Sun Lei. “After a stellar year of revenue growth of 2021, this agreement puts JX Luxventure on pace to have another one for 2022.”
This is a positive catalyst for JX, as the deal is about five times what the company brought in revenue during 2020. In addition, JX’s market capitalization is currently just below $9 million. This means that the deal is more than six times more than the market cap. Retail investors are taking notice of the deal as well. On Stocktwits, mentions of the LLL ticker have increased by over 900% at the time of writing.
However, this isn’t the only deal that JX has signed. Earlier this month, JX Hainan entered into an agreement with Aikayun Technology. As part of the agreement, JX Hainan received the “exclusive right to distribute cross-border products from Japan in the Hainan Island in the amount up to RMB1,000,000,000.”
What’s Next For JX Luxventure?
Looking forward, JX has disclosed that it has plans to enter the metaverse by supplying non-fungible tokens (NFTs). The venture will be led by the company’s CTO, Liu Ze, who is an “expert in Blockchain, Internet of Things and Artificial Intelligence.” In addition, Ze believes that the metaverse market in China will only grow in the coming years. However, investors should note that China banned all cryptocurrency transactions last September.
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
