Ever since Torque Lifestyle Brands Inc. (OTC: TQLB) finalized the divestment of its subsidiary American Metabolix, the company has been delivering major financial growth through its joint venture facility – Zero Torque Manufacturing. TQLB’s growth this past year has been uncanny – making it one of the most promising penny stocks today. This growth could mostly be attributed to the company’s investments in a range of equipment that will allow it to meet the inventory requirements of its two, fast-growing clients – Glaxon and Storm Lifestyles.
TQLB Stock News
TQLB prides itself in having a wide range of advanced equipment that allows the company to implement versatility in its manufacturing process. With this versatility, TQLB is able to offer countless options to its customers ranging from nutritional powders to dietary capsules. Although the company has long focused on establishing a solid portfolio of products that comply with FDA regulations, its rapid presence in the market could be attributed to its growth through acquisition model.
To finance its current joint venture partnership – Zero Torque Manufacturing, TQLB recently divested of its majority owned joint venture – American Metabolix – in a transaction that amounted to $1.3 million. Previously, the company acquired American Metabolix to open a path for its entrance into the ketogenic diet market that is projected to reach $15 billion by 2027. With products distributed in over 550 stores worldwide, American Metabolix’s growth potential was uncanny. However, after its divestment, investors are bullish on the company’s recent joint venture which has a promising outlook and could generate more growth.
Commenting on that, TQLB’s president – Leonard K. Armenta Jr – assured investors that this decision will enable the company to deliver on its promise of “brand growth and maximizing shareholder value”. He highlighted that even though American Metabolix was a promising venture, Zero Day Nutrition could prove even more lucrative as it provides the company with “a low-risk path to consistent and growing cash flows.”
Using the $1.3 million non-dilutive funding from the sale of American Metabolix, TQLB was able to obtain 51% ownership of the leading contract manufacturer – Zero Day Nutrition – along with a JV agreement to acquire Zero Torque Manufacturing, LLC. Pursuant to the terms of the agreement, Zero Day will contribute with its experience in manufacturing and sales, whereas TQLB will continue to contribute capital to support machinery and any additional production expenditures.
The most exciting thing about this joint venture agreement is the customer portfolio it brings as it includes multiple award-winning brands such as Glaxon. As an emerging nutrition and dietary supplements company, Glaxon has already won multiple industry awards – including newcomer brand of the year, breakout brand of the year, and overall brand of the year. In light of this recognition, the company is projected to have a rapid growth rate and eventually reach up to several million dollars in annual sales.
Glaxon also has a relationship with major industry player – GNC Holdings, Inc. (NYSE: GNC) – which offers a wide range of premium health and wellness products such as performance supplements, protein, vitamins, and merchandise as well as weight management supplements and herbs. GNC uses a multi-channel business model that primarily generates revenues from sales through the company’s retail stores, e-commerce, corporate partnerships, and manufacturing for US based and international companies.
Like many big companies, GNC suffered great losses in 2020 on the onset of Covid-19 and lockdowns in many countries which resulted in many of its stores closing for a period of time. Following those losses, the company decided to capitalize on other opportunities by establishing the platform – GNC Ventures.
As a platform that focuses on adding innovative and promising technologies and brands to GNC’s portfolio, GNC Ventures established a partnership with Glaxon marking its first strategic product partnership. The partnership is expected to allow Glaxon to reach a large customer base faster and help the company focus on continuously developing its products. In light of this, Glaxon has appointed Zero Manufacturing Facility as their lead manufacturer to allow the company to produce new unique products with the support of the industry powerhouse to capitalize on increasing demand.
In light of its connections to lucrative customers, TQLB is working on expanding its production space as it works to establish a new production facility that will allow the company to deliver the current and anticipated orders. The 20-square foot facility is equipped with brand new cutting-edge machinery as it is designed to produce up to 10,000 units of product per day. With TQLB’s operations growing by the minute, the company also has plans to expand even further and establish other facilities to keep up with the growing number of orders.
Given the company’s solid financials, expansion, and continuous developments, investors believe TQLB’s stock could be significantly undervalued given it is currently trading at $.04 with a low float of roughly 4.6 million shares.
Media Sentiment
@SpaceManTrades is excited to hold TQLB shares at it shapes up to be one of the most promising penny stocks this week.
Technical Analysis
Currently trading at $.04, TQLB has a resistance at .046 and .0547. Its approaching its support at .0374 while the RSI dips at 43 while accumulation remains very low. The MACD is bullish.
TQLB is recovering after becoming oversold on the 12th. The bounce from its support at .0374 shows that this is a strong support and the stock could rebound again as it approaches oversold. Although the company appears undervalued given its revenue production and assets – factoring in this $4 million order while considering its third quarter revenue of $129 thousand means the stock is actually extremely undervalued. In light of its expected revenue growth over the next 2 quarters, TQLB’s shares should be valued closer to $.46 – a roughly 1,000% increase. While this is unlikely, it seems very probable that the stock should see an increase to February’s high of $.19 before the end of 2022 which could make it one of the most promising penny stocks this quarter.
TQLB Stock Forecast
Clearly, TQLB has been increasing its efforts to establish its presence in the growing nutrition and supplements industry. With a lucrative production facility and advanced equipment, TQLB is well-positioned to deliver on massive purchase orders as well partner with more prominent brands to facilitate its growth. Given the stock’s low float, TQLB could be one of the promising penny stocks that are positioned to move on news. In light of this, investors are bullish that 2022 could be a year of significant growth for the company.
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