In recent times Life Clips Inc (OTCMKTS:LCLP) has come into considerable focus owing to its work in relation to the crypto space and yesterday, the stock managed to clock gains of a staggering 147% following a key development.
Trading Data
On Monday, LCLP stock soared 147%% to $0.0094 with more than 198.11 million shares traded, compared to volume of 23.33 million shares. The stock moved within a range of $0.0040 – 0.0095 after opening trading at $0.0041.
Life Clips, Inc. Pays All Convertible Debt and Decreases Shares Outstanding
The company, which is currently best known for being the parent company of Cognitive Apps Software Solutions Inc and Belfrics Global, announced yesterday that it had been successful in eliminating the entirety of its debts to the tune of almost $4 million. The debts existed in the form of outstanding convertible debt and Life Clips paid it all off in the form Belrium.
A transaction of that nature can give the company considerable legroom with regards to its business activities and it appears that it was acknowledged by the market participants as well. In addition to that, it is also necessary to point out that the transaction also reduced the fully diluted share count of Life Clip by around 400,000,000 shares.
That makes up 22% of the total outstanding and issued shares in Life Clips. That may have been another major factor behind the rally. It remains to be seen if the stock can manage to add to its gains today.
Key Quote
Robert Grinberg, CEO of Life Clips, said, “The restructuring of all of our outstanding debt owed to convertible debt holders is the first major step in executing on the next phase of our business plan. Not only does this eliminate debt and reduce potential dilution, it shows that investors have confidence in BEL. By eliminating our convertible debt, we are also able to reduce the shares outstanding by freeing up the underlying shares it was convertible into. We have strengthened our financial position and are better positioned to secure new capital that will enable the expansion of our Company over the next 12 months. This is a critical step for advancing our company going forward.”
Technical Data
LCLP stock is trading above the 20-Day and 50-Day Moving averages of $0.0072 and $0.0093 respectively. However, the stock is trading below the 200-Day moving average of $0.0203.
