TriNorth Capital Inc. (CVE:TRT) (PINK:TNTHF) stock price gaped up in reaction to the letter of intent that was announced a week ago.
TRT gaped up 57.1% on a trading volume topped 7.35 million, was nearly 18 times heavier than the daily average of 411 thousand. The stock had been halted for a whole week following the initial announcement, thus this is actually a fresh reaction to the news.
TriNorth announced on April 5 they have entered into a letter of intent with Difference Capilta Inc. The latter was proposed to get as much at 49.9% interest in TriNorth for an investment of $4.5 million.
Moreover, if the deal goes through the company would change their name to Difference Capital Funding Inc.
The deal is in contemplation, not a real thing yet, and will require approvals by regulators and shareholders. The company also intends to perform a share consolidation on 1 for 10 basis or similar, depending on how the board votes.
The company has around 151 million shares outstanding which means the proposed price for half the business puts the share price at 6 cents. Traders will likely keep the market pricing close to this value until more news on the deal come out. A slight but steady depreciation is a common thing during the idle time in such cases.
