Jupiter Wellness Inc (NASDAQ:JUPW) shares are surging after it entered into an asset purchase agreement with GBB Drink Lab Inc.
Under the agreement, all operating assets related to GBB Drink Lab, including the Safety Shot beverage, will belong to Jupiter Wellness. The financial details of the deal were not disclosed.
The company noted asset is valued at $53 million by a third-party Valuation firm.
Safety Shot creates a new product category for rapid alcohol detoxification in the fast-growing hangover remedy market.
Safety Shot helps the body break down alcohol faster while aiding in recovery and rehydration. It is formulated with scientifically proven ingredients that stop the body from absorbing alcohol into blood, reducing Blood Alcohol Content (BAC).
The Safety Shot business segment is expected to generate $25 million in revenues and $4 million in net income by the first quarter of 2024 for Jupiter Wellness, with accelerated contributions thereafter.
“The world-first breakthrough nature of Safety Shot and the market it addresses are a tremendous opportunity that Jupiter will effectively execute upon,” said CEO Brian John.
According to a new report by Grand View Research Inc, the global hangover cure products market size is expected to reach $4.67 billion by 2028 and expand at a CAGR of 14.6% from 2021 to 2028.
Price Action: JUPW shares are trading higher by 43.4% at $0.5250 on the last check Monday.
