Traders receiving yesterday’s newsletters, which pointed out the current price momentum of LQMT’s shares, made the price actually surge up. Some of them probably profited from the 27.14% jump in the share price and the close at $0.89. The 4 million share volume was far away from the rush in the middle of last month, but it is still an enormous value for the stock.
The plenteous news and events around LQMT from August seem to have satisfied the markets’ informational need by now. Along with the uncountable stock promotions, that were supposedly all free of charge and whose effect is clearly seen on the chart, the company also announced some big deals. It remains however unclear which of the two caused the huge spike.
From the proceeds of a subscription agreement with an institutional investor and from a strategic licensing transaction parallel to the running promotions LQMT managed to pay out a substantial part of its debt. As this would barely change a lot about the generally poor financial state of the company, it seems that the promotional support must have been much more important for the stock.
Meanwhile, the latest SEC filing of the company related to some of its beneficial owners reveals some of the winners from the free LQMT stock promotions from last month. In the middle of August, a group of investment funds exchanged some Series A-2 Common Stock Purchase Warrants and Exchange Notes of the company for about 1.9 million shares of LQMT common stock at prices between $0.50 and $0.60 for a share.
At the same time, these investors also exchanged Series A-2 Preferred Stock of the company for nearly 3 million shares of common stock in a cashless transaction. These shares, plus additional one million shares, were then sold out in open market transactions at prices between $1 and $1.57 for a share.
