Yesterday, on the company’s private placement news, the exotic EMC Metals Corp. (TSE:EMC), (PINK:EMMCF) stock formed an exotic gap on its price chart.
On two markets, the shares rushed up as never before.
On the Toronto Stock Exchange, EMC flew 90% up between the sessions in a trading volume exceeding sixteen times the average for the company.
The Grey EMMCF, meeting high appreciation of investors, soared 101.44%.
One of the main reasons for the stock stir was surely the released by EMC Metals Corp. received subscriptions for a private placement. The company announced that it expects gross proceeds of $745 K, which will be used for the operations on the Nyngan Scandium Project Joint Venture in Australia.
But why did the shares of EMC Metals Corp. explode in that way yesterday?
The amount of the above mentioned gross proceeds is almost equal to the reported at the end of this June accounts payable of the company. At the same time, EMC has a long term debt for more than $4 million. Looks like if EMC is a company involved in the development and application of a specialty and exotic metals technology, its stock should also deliver exotic performance.[BANNER]
Maybe, one more thing should be included in the factors of the stock stir: the company’s presentation from the end of the last month. There, EMC Metals Corp. presents its intent to acquire Technology Store, Inc. According to the company, the acquisition “will provide EMC with access to certain assets used in connection with mining activity, as well as exclusive access to the extraction technologies.”
Up to now, there is no information related to the acquisition in the company’s SEDAR filings.
And finally, maybe the huge share price jump up was that highly appreciated just because the latest official news form the company before yesterday’s date back to the end of this August.
