Goldbrook Ventures Inc. (CVE:GBK) (PINK:GBKVF) stock price has formed a stiff trading channel which it couldn’t break even under the very high trading activity recorded this Friday.
The stock added 10% to the share price over the last trading session, but the trading action didn’t stand out from the generally volatile history of GBK stock.
The stock struggles to pass above the 17 cents per share resistance and is concurrently refusing to go below 15 cents per share, forming a clearly defined trading channel.
GBK stood out on the Toronto Venture Exchange on Friday because of the significantly heavier than normal trading volume. 878 thousand shares changed hands, which was nearly 5 times more than the 90-day average of 176 thousand.
Since the stock price failed to break out on such a heavy volume it is unlikely it will do so in the near future, unless some serious news come out.
The last news from Goldbrook stated the company has closed a non-brokered private placement of 12.3 million units priced at 15 cents, leading to gross proceeds of $1.85 million. The units consist of one common share and one share purchase warrant exercisable at 25 cents per share for a period of two years.
The potential dilution to shareholders from this capital raise is nearly 12%, which is rather alarming.
