The trading volume, however, continued growing to reach nearly 521,000 shares traded. Thus, the usually low-liquidity Document Capture Technologies’ stock keeps being highly demanded and the shares get even more overbought. The value gain is also remarkable: the price jumped more than 80% within a week and stayed at $0.85 for a share yesterday.
Second quarter results will be released tomorrow and investors look eager to see them, as the company got some other good news this week. An 8-k filing from yesterday confirmed the Share Purchase agreement with an investor, who will purchase 3.86 million shares of DCMT common stock for a total amount of $4 million. Further, the investor received the option to purchase more shares at the same price of $1.036 per share over the next two years. The new shares will not be registered and will not lead thus to immediate dilution for current shareholders.
Although Document Capture Technologies’ previous quarter results were positive, the additional cash seems extremely needed as their cash position got weaker over the last year and the current assets of the company consisted mostly of receivables and inventories.
The market’s positive reaction to the funding agreement is also supported by the fact that DCMT has no debt or other considerable obligations to cover and the further clause in the agreement to use the proceeds to fund the operations and to expand the business sound logical and plausible.
