Although the company made a fairly significant announcement on Friday, it did not do much for the Golden Grail Technology Corp (OTCMKTS:GOGY) stock which ended up with a decline of as much as 4%. Last Friday the company announced that it had sent in a filing for reducing the current authorized share count to 500 million from a staggering 5 billion.
Trading Data
On Friday, GOGY stock decreased 3.69% to $0.2220 with 31.73K shares, compared to its average volume 104.66K shares. The stock moved within a range of $0.2210 – 0.2390 after opening trade at $0.2210.
Such a move is generally seen as a positive but the Golden Grail stock suffered nonetheless and went through a selloff. It is going to be interesting to see if the stock can make a recovery today and through the rest of the week or not.
The Chief Executive Officer of the company Steve Hoffman spoke about the move as well. He noted that there was no need for the company to issue as many as 5 billion shares. He went on to note that following this reduction Golden Grail would still have an adequate number of shares in reserves.
More importantly, it would also help in reducing dilution of shares to the minimum for shareholders. The company is involved in the fast growing beverage industry and is known for its innovative products.
Key Quote
“It is difficult to imagine a situation in which the Company would need to issue 5 billion shares. We believe this reduction leaves sufficient shares in reserve and serves to minimize dilution among our shareholders” said Steven Hoffman, CEO.
Technical Data
GOGY stock is trading above the 20-Day and 50-Day Moving averages of $0.20 and $0.17 respectively. Moreover, the stock is trading above the 200-Day moving average of $0.17.
