It was a day of some significant announcements for Active Health Foods Inc (OTCMKTS:AHFD) this past Friday and it affected the stock, which suffered from a significant selloff. The company announced that it had decided to terminate the $20 million regulation offering of its shares to the public that it had announced previously.
Trading Data
On Friday, AHFD stock fell 33.33% to $0.0002 with more than 342.57 million shares, compared to volume of 49.03 million shares. The stock moved within a range of $0.0002 – 0.0003 after opening trade at $0.0002.
Active Health Foods, Inc. Ending Reg a Offering, Approves Substantial Reverse Split
However, that was not all. In addition to that Active Health also announced that it had filed for a major reverse split of its common to the Financial Industry Regulatory Authority (FINRA). The reverse split is going to be implemented on a 1 for 7000 ratios.
The announcements came as sources of major consternation among investors and the Active Health stock tanked by as much as 33% for the day. It was also announced that once the reverse split of the shares was completed, the company was also going to make a filing for changing the name of the company to ‘Active Health Inc’. On the other hand, the ticker symbol of the stock was also going to be changed on the OTC Markets. At this point in time, it is going to be interesting to see if the stock is going to continue to slide or not.
Key Quote
Joe Wallace, AHFD President, stated “Our plan is to uplist to the NASDAQ Capital Markets once AHFD’s minimum bid price trades at $4.00 per share for 90 days, which will increase the value to all of our shareholders and attract new market makers trading our shares. We believe that there has been confusion about our plans in the trading market, between the previously announced Reg A and the reverse split. Hopefully, this announcement will clarify the situation.”
Technical Data
AHFD stock is trading below the 20-Day and 50-Day Moving averages of $0.0004 and $0.0006 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0008. The company has a total market capitalization of $100K.
