CIMG Shares Surge 25% After Subsidiary Launches Maotai-Style Liquor

CIMG Inc. IMG stock rose 25% after hours on Wednesday.

Check out how IMG stock is trading here.

What Happened: The stock of the Hong Kong-based digital health and sales development company saw an increase in its value after the company announced that its subsidiary Shanghai Huomao Cultural Development Co., Ltd. ("Huomao") has officially launched its premium Maotai-style liquor, Huomao Jiangxiang Baijiu, on major Chinese e-commerce platforms. The company also revealed it has initiated global partnership recruitment and appointed brand ambassadors in several countries such as Singapore, Kazakhstan, Japan, Germany and Italy.

CIMG Inc. owns several brands, including Kangduoyuan, Maca-Noni, Qianmao, Huomao, and Coco-mango.

According to the Benzinga Pro data, at the close of the market on Wednesday, the stock was valued at $0.20, after dropping 92.93%. However, after the news broke, the stock value surged to $0.25 in after-hours trading, representing a 25% increase. The company traded over 4 million shares, far above its average volume of around 862,000, with a market cap of $7.28 million.

Why It Matters: The surge in stock value is a direct result of the CIMG’s strategic move to expand its product line and presence in the global market. The company’s expansion strategy and the introduction of a premium health-focused baijiu, incorporating Traditional Chinese Medicine principles, have positioned CIMG Inc. for potential growth in the global market.

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The company’s plans for medicinal-food fusion principles to serve broader consumer demographics could further contribute to its growth trajectory.

Benzinga’s Edge Stock Rankings indicate that IMG has a negative price trend across all time frames. Know how its momentum lines up with other well-known names.