One of the companies to have made strong moves this week in the stock market is 1812 Brewing Company Inc (OTCMKTS:KEGS) and the good times continued yesterday as the stock ended up with gains of as much as 24% for the day.
On Thursday, KEGS stock soared 23.75% to $0.0010 with more than 237.40 million shares, compared to its average volume of 84.55 million shares. The stock moved within a range of $0.0007 – 0.0010 after opening trade at $0.0007.
1812 Brewing Company Addresses Outstanding Convertible Debentures
Earlier on in the week it had been announced that its Chief Executive Officer Tom Scozzafava had decided to exchange the common shares he owned in the company for a company note. As a result of the transaction, as many as 3.2 billion shares in 1812 Brewing Company went back to the transfer agent and then on to the company’s treasury. It was a major new development since it would theoretically make the 1812 Brewing Company stock more liquid.
It was perhaps part of the company’s strategy to reduce its shares and through the course of 2022 it had managed to reduce its shares by 167 million shares net. Scozzafave spoke about the necessity for the step. He noted that it was important for the company to have the necessary credibility with creditors, investors, vendors and competitors. Moreover, such a move could eventually lead to a share price that may continue to trend higher, he added.
Chairman and CEO Thomas Scozzafava expounded on the rationale for the share retirement: “To achieve the Company’s overarching goals in the long term, it is imperative that the Company gain credibility with vendors, creditors, investors and with its peers in the industry. In particular,” Mr. Scozzafava continued, “a strong and generally upwardly trending share price makes the Company a far more attractive partner for an investment into or acquisition of another brewery. The stronger the stock, the stronger it is as potential currency for acquisition purposes, which we have outlined many times is a crucial part of KEGS growth strategy.”