Recently, Geopulse Exploration Inc. (OTC:GPLS) won a competitive bidding process for a potash lease on a 234 acre parcel in San Juan County. The company also finalized a financing agreement for a maximum amount of $25 million.
The financing was confirmed through a press release yesterday. Zurich-based Haycliffe has agreed to seek to arrange a financing for GPLS. They will be entitled to a fee equal to 5% of the gross amount of the financing.
The stock price dropped 13.16%, and GPLS closed at $0.165 per share with a volume of 1.1 million shares.[BANNER]
While there have been some developments around GPLS, the current price means a $22.4 million market cap, and since the company is still to begin active operations some may view this as a high price.
Of course, others will say GPLS has potential which justifies this price. Either way, currently the company is not generating revenues, and none of the news is sensational enough to push the price higher.
The company stated it finds the conditions of the financing “exceptionally favorable for its shareholders”. Whether this is true is yet to be seen.
