One World Products Inc (OTCMKTS:OWPC), which is distinguished for being the biggest black-controlled hemp and cannabis producer in Columbia, saw its stock make a notable move yesterday, as it ended the day with gains of 7%.
Trading Data
On Wednesday, OWPC stock rose 6.82% to $0.1175 with 124.80K shares, compared to volume of 92.16K shares. The stock moved within a range of $0.1050 – 0.1199 after opening trade at $0.1190.
One World Products Establishes Common Stock Equity Agreement to Support its Growth
The rally in the stock came about after the company announced that it had gone into a stock purchase agreement as well as a registration rights agreement with an institutional investor. The agreement is for a maximum of $10 million worth of shares over the course of a period of 36 months at the prevalent price of the stock at any point in time.
In this regard, it should also be noted that in addition to the agreements, the institutional investor also made a fixed price equity investment to the tune of $150,000. The investment is subject to a holding period of 6 months.
On the other hand, One World Products also announced that appointment of a new independent director in its board of directors in the form of Terry L Buffalo. The company will have the right to start selling its shares to the investors once the agreements and registration statements are filed with the Securities and Exchange Commission.
Key Quote
Isiah Thomas, OWP Chairman and CEO, stated, “This investment into One World Products provides substantial upfront capital that will be used to continue to scale our operations in Columbia, enhance industrial sales of hemp products to customers and expand our carbon credits, and it is in common stock equity at a fixed price. Of note, the common stock equity agreement will provide us additional growth capital to increase our sales and is at our control and discretion in regard to the amounts and timing. We believe this financing is not dilutive to current shareholders and enhances our value by increasing our cash and shareholder equity positions over time. It better positions us toward our capital markets’ goal for 2023 of an up list to a major U.S. national exchange. At this time, the Company has yet to decide on any recapitalization structure or timing, as our Board and management continue to believe out stock is undervalued.”
Technical Data
OWPC stock is trading above the 20-Day and 50-Day Moving averages of $0.10 and $0.11 respectively. Moreover, the stock is trading above the 200-Day moving average of $0.13. The company has a total market capitalization of $7.75 million.
