Yesterday, Bizzingo Inc. (OTC:BIZZ) dropped 10% during the trading session and finished at $0.55. The general weakness of the stock was visible on the intraday chart where the price line was unable to reach the previous day’s close throughout the whole trade.
This scenario happened on an conspicuously increased trading activity. In this respect, it should be pointed out that the number of traded shares exceeded 330 thousand which is way over the average daily volume.
A possible reason that could have provoked the intensive selling pressure yesterday, is the freshly filed 8-K form which informed about the company’s relations with certain officers. BIZZ announced that that it has entered into consulting agreements with Mr. Douglas Toth and Mr. Gordon Samson. [BANNER]
The agreements provided for a base salary of no less than $180 thousand per year. The two entities will additionally receive at least 1 million shares of BIZZ stock as well as stock option on 3 million shares of the company’s common stock.
Apparently, there was something which the market didn’t like about this announcement and subsequently a bearish mood took control of yesterday’s session of BIZZ stock.
The company, however, hasn’t issued any news recently which can additionally undermine the investors interest in BIZZ stock. For now there is only a short chart history and BIZZ is yet to form any significant action on the market.
