For investors looking for currently trending stocks, then 1812 Brewing Company Inc. (OTMKTS:KEGS) could be an ideal candidate considering it’s on an upward trend. In the last session, the stock jumped 62% amid increased investor interest after announcing the elimination of convertible debentures.
Trading Data
On Tuesday, KEGS stock slid 4.55% to $0.0010 with more than 135 million shares, compared to its average volume of 26.81 million shares. The stock moved within a range of $0.0010 – 0.0017 after opening trade at $0.0013.
About 1812 Brewing Company
Founded in 2002, 1812, Brewing Company is a private equity and venture capital firm based in Gouverneur, New York. The firm specializes in early-, mid-, late-venture, upcoming growth, and restructuring investments. Additionally, it focuses on capital market deals, leveraged takeovers, and management acquisitions. The Company invests in firms that need funds for expansion as well as in businesses pursuing takeover plans through stock, capital-related, and credit investments.
The Company primarily concentrates on the food and drinks, hospitality, entertainment, marketing services, tech, manufacturing, agriculture-related Company, and retail sectors. Although it frequently invests in North American businesses with a special concentration on Northern New York, it also considers ventures in the Caribbean, Mexico, and Central America. After two to five years, it hopes to sell its investments.
1812 Brewing Company, Inc. Eliminates Convertible Debentures
The Company has announced that it utilized proceeds from its Regulation A Offering in repaying two of its outstanding variable price convertible debentures. The two convertible notes had the option of converting into KEGS shares at a discount to the firm’s stocks’ then-market value. These two notes had a combined repayment period of about $300,000. They are frequently referred to as “floorless” notes since these conversions could be made at costs that could get lower and cheaper. KEGS seeks to create a network where some economies of scale are able to be shared across processes
Tom Scozzafava, the Chairman and CEO of KEGS, noted that even though the Company might have benefited from using these monies for operations and growth, they believed a longer-term value would be obtained by returning these notes prior to the start of conversions. Mr. Scozzafava added that the Company looks forward to informing investors of its advancements and improvements, both financial and operational.
Key Quote
KEGS’ Chairman and CEO, Tom Scozzafava, stated, “While the Company surely could have benefited by deploying these funds into operations and expansion, we felt a longer-term benefit would be derived by repaying these notes before conversions could commence.” Mr. Scozzafava continued, “We look forward to keeping you updated on the Company’s progress and developments – both operational and financial.”
Technical Data
KEGS stock is trading below the 20-Day and 50-Day Moving averages of $0.0012 and $0.0013 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0046.
