The closing of a private placement can move the stock in either direction but thankfully for Innovative Food Holdings (OTCMKTS:IVFH), its recently closed private placement has come as a positive trigger for its stock.
On Wednesday, the stock went up by 23% as investors moved on to it in a big way and that took its gains over the past week to a staggering 70%. In this situation, it might be a good idea to keep in mind that it was earlier on this week on August 31 that the company announced that it had closed the private placement worth as much as $3.75 million.
The gross proceeds generated by the company stood at around $3.75 million but investors need to note that legal fees as well as other offering related expenses are going to be deducted from the sum. Innovative Food Holdings also announced that two funds, SV Asset Management LLC and JCP Investment Partnership LP, both of which are related to members of the company’s board participated in the offering.
Bander Master Fund LP was an outside investor which decided to participate in the offering as well. It remains to be seen if the stock can continue to add to its gains today.