Yesterday, it was the Megola Inc (OTCMKTS:MGON) stock that emerged as one of the major gainers as investors flocked to the stock following a significant development.
The Megola stock soared by as much as 56% yesterday after the Chief Executive Officer of the company Robert Gardiner announced that the company was going to reduce the number of outstanding common shares by as many as 19,500,000 shares. He went on to state that he was in discussions with the corporate team with regards to the previous issuances of the common stock that it had done.
It is a major step from the company and the rally in the stock was also understandable. At the end of the day, the reduction in the number of shares can often come as a major boost for any stock.
On the other hand, the issuance of fresh stock can lead to rapid liquidation. Hence, investors decided to pile on to the Megola stock yesterday following the announcement from the company’s Chief Executive Officer. Gardiner also stated that at this point in time there are more than 20 million shares in Megola that are still in certificate form and are being reviewed for eventual cancellation.