Diversified holding company Alkame Holdings Inc (OTCMKTS:ALKM) saw its stock trading within a range on Monday. However, at the same time, it ought to be noted that stocks that trade in a range can also breakout all of a sudden, and hence, it may be a good idea to take a closer look into Alkame today. Before getting into some of the latest developments with regards to Alkame it may be a good idea for investors to consider taking a look at the company and its operations a bit more closely.
Trading Data
On Monday, ALKM stock ended flat at $0.0006 with more than 7.15 million shares traded, compared to a volume of 17.82 million shares. The stock moved within a range of $0.0006 – 0.0007 after opening trading at $0.0006.
About The Company
As a holding company, Alkame operates a range of subsidiary units and those subsidiary units are involved in a number of industries. The industries in which the subsidiaries are involved include beverage manufacturing, CBD hemp, food and beverage co-packing and manufacturing, and water technology among others. However, at the same time, it should be noted that Alkame is also looking to make acquisitions in other businesses as well in order to further grow its footprint.
Alkame Continues Strategic Debt Restructuring with Cancellation of $200,000 of Debt
As it happens, the company actually was in the news on Monday after it made a major new announcement with regards to its debt restructuring goals. The company announced yesterday that it was continuing on its path towards further boosting its balance sheet through debt restructuring with its biggest shareholders.
Alkame announced yesterday that it had managed to reach an agreement with the shareholder for the cancellation of a convertible note worth as much as $200,000. As per the terms of the agreement, the holder of the convertible note is no longer going to have the option of converting it into equity. As per the current valuation of the Alkame stock, it would have equated to around 4 billion shares in the company.
It was a major new development for Alkame and it is going to be interesting to see if it leads to any traction for its stock in the coming days or not. In this regard, it should also be noted that the company also stated that the whole thing had required a lot of effort and had been accomplished after months of discussions with the shareholder. It is a move that is going to help the company in not only stabilize its financial situation but will also give it a certain degree of operational effectiveness.
On the other hand, the cancellation of the note is also going to stop the specter of significant dilution of the Alkame stock and that is something that investors ought to keep in mind when considering this particular development. Last but certainly not least, the company will no longer have to repay the note.
Robert Eakle, the Chief Executive Officer of the company, spoke about the matter as well. He thanked the lender for having worked closely with Alkame in order to come to a solution with regards to this matter. He went on to add that it would give the company further financial wherewithal so as to unlock more value for the shareholders.
Key Quote
“We would like to thank our lender for working with us to find a solution that benefits all parties including the Company’s shareholders. This restructure allows us to continue to strengthen our balance sheet as we continue to grow our Company and provide value to our shareholders,” stated Robert Eakle, CEO.
Technical Data
ALKM stock is trading above the 20-Day and 50-Day Moving averages of $0.0006 and $0.0006 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0009. The company has a total market capitalization of $3.3 million. The stock is up 5% over the past month.
