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Why Reliv is up 29 Percent Tuesday (RELV)

Update: While the news of the Soy Labs acquisition is now days old, sources are attributing the move to institutional buying on this news.

Shares of Reliv International (NASDAQ: RELV) are up 29 percent in Tuesday trading after the maker of nutritional supplements announced that it had entered into an exclusive license to gain rights to the intellectual property of Soy Labs LLC.

Specifically, its interested in the nutritional ingredient, lunasin. Lunasin is a naturally occurring peptide research has identified as the key to many of soy’s documented health benefits, from cholesterol reduction to general cellular health.

The agreement is for the term covering the entire period of the patent and then full property rights after the patent expires. Reliv will make minimum payments of $1.1 million initially and additional minimum payments of $850,000 over the next five years.

“This is a major step for Reliv and elevates our company to a unique status in the nutrition industry,” said Ryan Montgomery, Reliv president. “For the first time we own an ingredient in its entirety, from the extraction process to the patented mechanisms of action within the body. And lunasin isn’t just any ingredient; it’s the world’s first epigenetic superfood.”

[stock-tools exchange="NASDAQ" symbol="RELV" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company mentioned.

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2 Comments

  1. Sid

    July 30, 2013 at 12:16 pm

    The Soy Labs deal was announced on July 24 – six days ago. Why would the stock trade up so much today?

    • Tim Parker

      July 30, 2013 at 12:26 pm

      Great question. We asked some sources who said that it was institutional buying based on bullishness over this acquisition.