Yesterday Dialogic, Inc. (NASDAQ:DLGC) closed up 21.64% at $0.90 on nearly 250 thousand shares. The excitement seems to be even greater today.
It seems the reason is a Form D filed with the SEC yesterday. Last week the company announced it had reached an agreement with a group of its largest shareholders to convert a significant portion of DLGC’s debt.
The company has issued convertible notes for $39.53 million. They will be converted into common shares after shareholder approval at the stockholder’s meeting expected in June. In addition to the direct reduction of debt, the agreement is expected to reduce the quarterly cash interest by $2.60 million.[BANNER]
Another thing which may be a factor for today’s performance is a promotion. A promoter has mentioned DLGC, but at this point it’s not clear whether there has been any compensation.
At the time of this writing DLGC has added another 59.99%, trading at $1.44. Back in March the price had another spike when the company announced the results for 2011. However, it didn’t last long. It will be interesting to see whether DLGC will manage to sustain the positive movement.
