The closure of a private placement is generally seen as a positive by many investors and hence, an announcement to that effect from Empower Clinics Inc (OTCMKTS:EPWCF) on Thursday led to a strong move in the company’s stock.
Trading Data
On Thursday, EPWCF stock jumped 5.37% to $0.2810 with more than 187K shares, compared to its average volume of 112k shares. The stock has moved within a range of $0.2387 – 0.2810 after opening trade at $0.2487.
Empower Clinics Announces Closing of C$3.0 Million Private Placement Financing
Yesterday, the Empower stock ended the day with gains of as much as 5% after the company announced that it had completed the private placement of its units. In addition to the units that were priced at $0.20 each, Empower also offered unsecured convertible debenture units, each of which were priced at $1000. In total, the company managed to bring in as much as C$ 3,000,000 from the transaction in the form of gross proceeds.
However, in this context, it is perhaps necessary to point out that the Chief Executive Officer and Director in the company Steven McAuley had picked up as many as 1.75 million units in the particular round of financing. The fact that the company’s top executive purchased so many units may have led to a degree of confidence in the stock from among investors and may have been responsible for the rally that was seen yesterday. It remains to be seen if the Empower stock can add to its gains today.
Technical Data
EPWCF stock is above the 20-Day and 50-Day Moving averages of $0.23 and $0.24 respectively. However, the stock is below the 200-Day moving average of $0.38.
