It was a tough day in the markets for investors in One World Products Inc (OTCMKTS:OWPC) as the company’s stock suffered from a strong selloff and ended up with a decline of as much as 9% for the day. The biggest black-controlled hemp and cannabis producer in Columbia, was in the news yesterday after it announced that it had submitted the S-1 to the United States Securities and Exchange Commission with regards to a registrations rights agreement and a common stock purchase agreement.
On Wednesday, OWPC stock fell 9% to $0.10 with more than 68K shares, compared to a volume of 72K shares. The stock moved within a range of $0.1000 – 0.1099 after opening trade at $0.1099.
One World Products Secures Additional Equity Funding and Access up to Additional $10 Million
As per the provisions of the agreement, the agreement in question is with an institutional investor and entails the purchase of a maximum of $10 million worth of shares which can be issued over a period stretching 36 months.
The stocks are going to be picked up by the investors as per the current market prices. While the announcement was certainly a significant one for One World Products, it did not quite lead to any optimism among investors at all and there was a selloff. It is going to be interesting to see if the selloff continues over the coming days or if there is any recovery. It could be a good idea to keep an eye on it.
Mr. Isiah Thomas, OWP Chairman, and CEO, stated, “We are delighted that our newest institutional investor clearly values the vision and tremendous growth potential that we see for OWP. Their second equity investment provides additional capital that will be used to continue to scale our operations in Colombia, enhance industrial sales of hemp products to customers and expand our carbon credits program. Of tremendous importance to us has been the faith and enthusiasm this institutional investor has demonstrated, evidenced by their $300,000 investment that is priced approximately 50% higher than our recent share price. Even more supportive long term, they are allowing us control over the timing and amounts of future equity capital, which allows us to take advantage of sudden increases in our stock price.
OWPC stock is below the 20-Day and 50-Day Moving averages of $0.10 and $0.11 respectively. However, the stock is trading below the 200-Day moving average of $0.11. The company has a total market capitalization of $6.60 million.