Cyberplex Inc. (TSE:CX) (PINK:CYPXF) stock continues to trade with a premium it received on Friday as the company announced to have achieved resolution with their lenders.
CX is up 10.5% over the last two trading sessions. Despite the volatile nature of the stock, it is supported by the news and thus there is limited selling. The increase in price was followed by significant trading volumes as well. Monday’s turnover topped 1.8 million and was nearly 6 times heavier than the average 306 thousand.
On September 16, Cyberplex announced that their indirect subsidiary Orion Foundry (Canada) Inc. completed a restructuring of its credit agreement with a syndicate of lenders. The new terms state that the remaining principle will be based on a repayment program linked to Orion’s earnings. The remaining amount itself was reduced to $2.5 million and the interest was made 1% lower. The maturity date got extended by another 20 months.
The stock price is still stuck in a channel between 9 and 11 cents. The initial attempt to break out right after the news brought some serious losses for the bulls, leaving a long shadow on the daily candle. This resistance now limits the possible move up, although the company’s current market cap of $14.7 million gives the stock a P/B rating close to 1 and suggests there is space for further appreciation.
