Carlisle Goldfields Limited (TSE:CGJ) (PINK:CGJCF) stock price is suffering from increased traders’ attention and the effect is likely to be lasting, despite the recent stock offering suggesting a much higher share pricing.
CGJ lost nearly 7% during Wednesday’s trading so far. 746.8 thousand in trading volume recorded amid the session was already more than three times heavier than the daily average of 201.6 thousand.
The price is going down for a second session in a row, and this drop might set the precedent for even further continuation, although it does seem to be having problems taking out support at 20 cents per share. The previous one was at 21 cents and it got taken out rather easily on a building up volume, which is sure to attract a lot of attention from aside.
Last week the company’s stock got listed on the OTCQX International market tier in the U.S. That caused a slight improvement in share price and probably was the cause of additional attention which now turned against the stock.
The current market cap of Carlisle is around $40.8 million which is twice their book value and allows for some price depreciation at this point, without worrying for sudden corrections.
The company recently offered for sale 8.3 million units at 30 cents per share for gross proceeds of $2.5 million. The offering doesn’t seem to affect the market price for the better.
