Liquidmetal Technologies, Inc. (OTC:LQMT) has been on a momentum ride since it hit a 52-week low at $0.11 in mid December.
In the last couple of sessions trading volume surged up significantly. In fact yesterday LQMT hit the second highest trading volume for the year with more than 8.8 million traded shares. The share turnover was almost 20 times higher the daily average.
During the momentum period, LQMT share price rose from $0.11 to $0.19, while on the last trading session the stock hit an intraday high at $0.227. Summarily the overall appreciation of the stock for the mentioned time is little over 72%.
Several trade alerts were issued yesterday paying notice to the momentum ride of LQMT stock. The alerts were distributed by websites owned by Blue Wave Advisors who stated that they have not been compensated for the advertising. However, the promoter states that he had purchased 100,000 share of LQMT in the open market and intended to sell them immediately following the alerts.
A recent even which could have underlined the stock spike was the transaction which was announced in an 8-K last week. The SEC filed document points out that a subsidiary of LQMT had entered into a transaction pursuant to which it had issued and sold additional membership interests to third party investors.
The 8-K states that the value of the sold interest is estimated at $3 million which had been paid in cash in the amount of $1.7 million and an interest bearing note due May 31, 2012 in the amount of $1.3 million.
According to the document, the proceeds from the investment had been used to pay off an existing term loan of LQMT’s subsidiary in the aggregate principal amount of $400 thousand.
