Horn Petroleum Corp (CVE:HRN) (PINK:HPMCF) stock price regained some ground after the company decided to do a private placement.
HRN share price gained 36% on Thursday as the price climbed up in a steady manner. The trading volume was 2.2 million, nearly three times heavier than the daily average of 824 thousand. The end of day trading activity suggests a bullish follow up is likely to happen.
It was the first time in more than a week that the share price showed a seriously bullish move. It should have been called by the bulls though – Horn recently signed up for a $15 million funding round and the price was down significantly from the previous controversial drilling update, but bears had failed to force any kind of a downtrend.
Horn will be selling 18.75 million units priced at $0.80 each and consisting of one common share and one share purchase warrant exercisable at a price of $1.20. The deal is non-brokered private placement.
The company will use these fund to spurt the drilling program in Putland, Somalia and for a general working capital purposes as is the common practice. Shares sold under the agreement will be subject to a hold period of four months and traders might even get to see warrants put on the open market at the end of it.
