Grove Collaborative Surges 21% After-Hours After Investor Pushes For Company Sale

Grove Collaborative Holdings Inc. (NASDAQ:GROV) experienced a surge of 21.37% in after-hours trading on Tuesday, following HumanCo Investments’ suggestion for the company to consider a sale.

What Happened: After an investor from HumanCo Investments, an investment management firm specialised in health and wellness, sent a letter to the Grove Collaborative’s board, urging them to consider a sale, the stock of the environmentally friendly everyday essentials company saw a 21.37% increase in value in after-hours trading, reaching $1.42.

This news seems to have had an immediate impact on the company’s stock.

Why It Matters: This surge in stock value comes at a crucial time for Grove Collaborative Holdings — an online retailer that purveys eco-friendly and sustainable household goods. The company has been facing challenges in meeting the market cap and equity requirements of the New York Stock Exchange (NYSE). In May, the company received a non-compliance notice from the NYSE due to its failure to meet these requirements.

Moreover, Grove Collaborative Holdings recently amended its Stock Exchange Purchase Agreement (SEPA) and extended it to August 2027. The amendment involved a $100 million stock sale with Yorkville. The company’s stock value has been fluctuating in response to these developments.

The recent call for a sale by an investor has sparked further interest in the company’s future, leading to a surge in stock value. 

Price in Action: According to Benzinga Pro data, Grove, after closing at $1.17, down 1.68% for the day, saw an uptick of 21.37% amounting to $1.42 during after-hours trading.

Benzinga's Edge Stock Rankings indicate negative trends across short, medium and long-term periods. Track the performance of other players in this segment,.

Photo Courtesy: jamesteohart on Shutterstock.com

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