In the last two trading sessions Trans-Lux Corp. (PINK:TNLX) shares traded under the influence of the news from Monday afternoon. The share price ranged from $0.26 to $0.78 as two effects were to be considered – the dilution and the debt restructuring. 
On Tuesday, TNLX more than doubled its share price on the heaviest trading volume for the year, while yesterday the stock reported also a new 52-week high. Though, the last session closed at $0.40, which is a 27.27% decrease from Tuesday session as the trading volume was also not that strong with 107,500 traded shares.
After market close on Monday afternoon, Trans-Lux first filed a notification of late filing to the SEC concerning the company’s quarter report for the three months ended September 2011. As reasons for the delay TNLX points out some pending additional information that is needed to prepare the report. That may sound reasonable considering the press release that followed. It said that the company has completed its financial restructuring and recapitalization over the issuance of convertible preferred stock and warrants for a total of $8.3 million.
The preferred shares are convertible into up to 20.8 million common shares as soon as the company increases the number of shares of its authorized common stock at the next annual shareholder meeting. The proceeds are to be used for the repayment of certain outstanding debts of TNLX. That shouldn’t be considered news from this week, however, as TNLX had filed a Notice of Exempt Offering of Securities already a week ago.
Looking into TNLX latest available quarter report makes it clear why the share price fell back down so quickly yesterday. At the end of June this year, the working capital deficit was $18.8 million and the company has accumulated significant recurring losses. That puts its further existence under question, even with the additional capital raised which would cover only part of the outstanding debts.
