Following a major new announcement with regards to a private placement, the Nevada Exploration Inc (OTCMKTS:NVDEF) stock went through a selloff yesterday and ended the day with a decline of as much as 13%.
Trading Data
On Monday, NVDEF stock slumped 13.04% to $0.0200 with 19 shares, compared to volume of 116.87 shares. The stock moved within a range of $0.0200 – 0.0200 after opening trade at $0.0200.
Nevada Exploration Announces Private Placement
The company announced yesterday that it was going to have a non-brokered private placement of as many as 40,000,000 units. Each unit is going to be priced at C$0.025 so as to generate gross proceeds to the tune of as much as C$1,000,000. However, the news did not elicit much enthusiasm from investors and the stock declined sharply amidst a selloff. It remains to be seen if it can make a recovery today or not.
Each of the units are going to be made up of one common share in Nevada Exploration and a solitary purchase warrant for one common share. The holder of a share purchase warrant is going to be entitled to pick up a common share in the company for the exercise price of C$0.05 within 36 months from the date of closing. The company also noted that as much as 40% of the proceeds from this operation are going to go towards claim holding fees.
Technical Data
NVDEF stock is below the 20-Day and 50-Day Moving averages of $0.0268 and $0.0325 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0536. The company has a total market capitalization of $3.38 million. The stock is down 42% over the past month.
