On Friday a massive buying pressure increased CardioComm Solutions Inc. (CVE:EKG) (PINK:EKGGF) stock price after the company decided to do a $2 million private placement.
EKG stock price gained 14% on Friday under a trading volume of 10.2 million which was far above the average of 1.96 million.
The company said on February 3 they will conduct a non-brokered private placement for around $2 million. 4 million units will be offered at 50 cents each. Those will include one common share and one warrant exercisable at $0.75. Securities will be subject to a four months hold period.
The proceeds will be used to accelerate the commercial launch of HeartCheck handheld EKG monitoring devices CardioComm has developed. The company also plans to strengthen their customer support and QA teams, IT infrastructure and increase marketing and sales resources.
Two day earlier, on February 1, the company also announced to have entered into a device integration agreement with TZ Medical, Inc. Under the deal CardioComm will include TZ Medical’s Aera CT Mobile Cardiac Telemetry monitor into their GEMS software solution.
Naturally both the news had substantial effects on the share price because EKG is being closely watched since getting the FDA approval to market HeartCheck. The stock price is at the upper limit of its possible value range though, thus any further appreciation will require substantial buying pressure. The recent spike in trading activity showed there is a stubborn resistance at around 45 cents per share, and it will likely require another batch of game changing news to bust through it.
