After an agreement for a plan of reorganization was filed on Wednesday, the stock closed 37.5% higher on Friday to close at $0.33 on over four times the average trading volume of about 909,000 shares traded. This year’s bottom was hit last Monday and the direction of move appears to be again upwards. On a bullish MACD crossover and constantly increasing volume, it remains though uncertain if TRXBQ will manage to form a real uptrend soon.
The company is not disclosing any financial information and is still negotiating the terms and conditions of its emergence from the bankruptcy proceeding. It seems that investors have suffered a lot on the lack of news and the only announcement this year that was not related to the reorganization plan supported the demand for TRXBQ shares.
On Thursday last week the company released another increase in the price of its titanium dioxide grades in North America with $0.08 per pound. A couple of days before that a price increase of $175 per tonne for Asia Pacific was also announced.[BANNER]
The filed with the Bankruptcy Court new plan suggests that the company will emerge from Chapter 11 by the end of the year and appeared to be more favorable for shareholders than the previous reorganization plans.
The reorganization will be financed through the proceeds of a Rights Offering and through the issuance of New Convertible Preferred Stock, whereby the company will be afterwards clear from its environmental liabilities. The total proceeds from the rights offering should be $170 million and all holders of unsecured claims will have the opportunity to own 78.4% of the new common stock to be issued.
