On Wednesday, Pure Harvest Corporate Group (OTCMKTS:PHCG) made a positive announcement with regards to the reduction in its corporate debt but the news was not met with much enthusiasm by investors as the stock tanked by as much as 5%.
Trading Data
On Wednesday, PHCG stock moved down 4.53% to $0.0200 with more than 85.99K shares, compared to volume of 81K shares. The stock moved within a range of $0.0200 – 0.0249 after opening trade at $0.0249.
Pure Harvest Announces Significant Debt Reduction Via Creditor Settlement Agreement
The company, which is involved in nutraceuticals, cannabis and hemp-based health and wellness products, announced yesterday that it had signed a settlement agreement with regards to some of its debts. The agreement in question was signed with some of its creditors and that helped in reducing around $2.8 million worth of Senior Debt from its corporate debts.
In addition to that, the United States District for Wyoming also granted a motion by way of which all the claims with regards to those debts have been dismissed.
The Chief Executive Officer of the company Matthew Gregarek, noted that it was a significant event for Pure Harvest since the reduction was meaningful. The reduction in the debt was going to be reflected in the next quarterly filings that are going to be submitted by the company. The debt reduction was one of the numerous goals that had been set by the company’s management for the purpose of further strengthening it.
Key Quote
“This is a significant event for our Company that will result in a meaningful reduction in the amount of debt on our balance sheet. We expect the debt reduction to be reflected in our upcoming quarterly filings,” commented Matthew Gregarek, Pure Harvest’s Chief Executive Officer.
Technical Data
PHCG stock is trading below the 20-Day and 50-Day Moving averages of $0.0206 and $0.0236 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.1129. The company has a total market capitalization of $1.5 million.
