AMNL new 52-week low noted yesterday is at $0.50 for a share and the stock closed the session at $0.58 on a trading volume exceeding 601,000 shares. That share turnover was the highest seen this year, and although no particular reason from yesterday for such sell-off could be identified, it seems that shareholders expect that their holdings in the company might get diluted soon.
Last Friday, Applied Minerals filed certain amendments to its last three quarter reports and to the annual report for 2009. Though, the changes do not seem significant and able to cause the negative reaction on the market, stating only that AMNL common shares have no par value instead of the given par value of $0.001 in the financial reports.
Around two weeks ago, the company announced an agreement for the joint development of a new range of high-performance DragoniteTM branded Halloysite Clay products, to be introduced by the end of the year. On the same day, Applied Minerals filed a shares registration statement for 12.98 million new shares of common stock. The number includes also the shares issuable upon conversion of the issued in October notes for raised gross proceeds of $3,050,000.
AMNL imroved cash position might help the company develop its only asset, the Dragon Mine property, but traders obviously did not consider the projected revenues as secured, or offering further rising potential for the share price.
