Passport Potash Inc. (CVE:PPI) (PINK:PPRTF) stock price had a short rally after the company announced substantial financing and dropped a recent LOI.
PPI share price gained roughly 60% over the past two sessions. The trading volume reached 4.4 million on Monday, only slightly lower than the nearly 6 million turnover reached on Friday but with a much more stable rise in price.
The solid white candle led from Monday to a small gap up this morning but profit taking took the better of this rally over the first half of the session and created a significant price retracement.
The commotion is caused by news of Passport terminating an outstanding LOI and securing a substantial financing at the same time. The new terminated letter of intent with NZ Legacy, LLC was originally entered into on October 20 when Passport contemplated acquisition of 50% of HNZ Potash, LLC.
The main reason for a share price increase, however, was the secured private placement of $6.975 million. It is fully subscribed, giving out that institutional investors are eyeballing the company. The offering consists of 46.5 million units priced at 15 cents. They are composed of one common share and half a warrant exercisable at 20 cents over a one year period.
Additionally the company decided to reprice a total of 7.098 million earlier issued warrants giving a new face value of 20 cents to each.
