Encore Renaissance Resources Corp (CVE:EZ) (PINK:ERRCF) stock became lively after the company appointed a new CEO and said they will be reassessing the business.
EZ trading volume reached 20 million on Wednesday and was the heaviest recorded over the past year, far above the average 1.9 million. Share price action wasn’t that stunning though, it exhibited only casual volatility.
The news that created the increase in trading should have definitely put a stop to the downtrend in share price. The stock might go into consolidation at this stage until further update from the company.
On December 14 Encore announced to have assigned Mr. Matt Wayrynen as President and CEO. He was also entrusted with a task of reorganizing the business with the main focus on the development of Bonaparte mine property in British Columbia.
The first step will be an evaluation of information gathered on Bonaparte to date. A strategy for further development will be devised once the initial assessment is complete.
The company holds a $1.2 million working capital deficit and is constantly issuing more capital stock to cover for their operating losses. On the other hand, the value of their properties alone is three times the current market cap. If the assessment confirms this value to be true EZ stock price should begin to head up.
