NutraCea (PINK:NTRZ) jumped up above the moving average in the last two trading days and is currently trading between the 50- and the 200-day MAs. On Monday, the company announced two funding agreements, but they are not a reason for such excitement. 
NTRZ closed at $0.142 yesterday on a volume of around 497,000 traded shares. The increase in the closing price is 9.23% and although there are resistance levels the stock has already formed a bullish pattern on the chart. At the same time, the yearly chart shows that NTRZ might have started to reverse the long-term downtrend.
Earlier this week, NutraCea announced that it had completed two funding rounds. Through the first one the company issued to an investor a discount senior convertible note in the amount of $870,000, the second one was also through the issuance of a subordinated convertible note. The fundings provided the company with total proceeds of $2.7 million.
The negative side of the transactions is the fact that the notes are convertible, and that the investors received also warrants to purchase additional shares of NTRZ common stock. That would dilute the company’s shareholders at some point in the future. Another thing is that NutraCea has large debts and part of the proceeds from these last two funding rounds would be used to make some payments to the company’s creditors.
