Only one cent separated SILA share price from hitting the $1 barrier and breaking the August resistance on Friday. SILA closed at $0.97, 5.43% higher than the previous day and reached the highest value of $0.99 during the trading session. The 1.87 million share volume improved the technical indicators of the speculative, but as it seems loved by traders, SILA stock.
A generous third party called Winning Media keeps paying for SILA’s countless promotions. Last week, promoters received at least $75,000 for their strategic services, the most expensive service of one of them being worth $40,000 for one week of profiling. The result was the possibility for an almost 24% gain over the week.
As known, SILA has a Share Issuance Agreement with an institutional investor for up to $7.5 million in funds in exchange for units of one share and one half of a warrant each. Each time the company receives an advance under that agreement, it has to issue a number of units at a discount, or more precisely the unit price should be equal to “90% of the volume weighted average of the closing price of the Company’s common stock for the ten business days preceding the date of any notice requesting an Advance”.
Since the beginning of July, SILA has received $1 million in cash under that agreement, the latest advance being received at the end of last month. Though, as SILA share price has been falling down and the units get cheaper and cheaper, more and more shares have to be issued under the terms of the agreement. The July, August and September units were priced respectively at $1.10, $0.80 and $0.75, while almost 1.19 million new shares were issued.
The cheaper SILA stock gets, the more profitable the institutional investment in SILA becomes on the next promo jump up. While normal traders have maybe only the higher dilution risks, and the theoretical chance of SILA to find some gold.
