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Yoshitsu (NASDAQ:TKLF) stock sank 27% in midday trading Monday after rallying 47% on Friday following news that it plans to acquire Hong Kong-based beauty products retailer Tokyo Lifestyles.
Shares of Yoshitsu, a Japanese retailer of health and beauty products, opened at $2.33, recently changing hands at $1.67, down 27%, at approximately 12:45 p.m. ET.
On Friday, Yoshitsu shares shot up 47% after it said it had agreed to acquire Tokyo Lifestyles, an importer and retailer of Japanese cosmetics, from All Seas Global for around $2.8M. The deal also includes Tokyo Lifestyles’ live e-commerce site Shenzhen Qingzhiliangpin Network Technology.
Yoshitsu said the acquisition would accelerate its expansion in the live-streaming e-commerce and Southeast Asia markets. The deal is expected to close by the end of July.
Yoshitsu went public in mid-January following a $24M initial public offering.
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