It was a pretty tough time in the markets this past Friday for investors in Western Uranium & Vanadium Corp (OTCMKTS:WSTRF) as the stock slumped by as much as 4% despite making a key announcement. In this situation it may be a good idea to take a look at that announcement and then figure out if the fall could in fact be an opportunity.
On Thursday, WSTRF stock fell 3.55% to $1.36 with more than 45k shares, compared to its average volume of 87K shares. The stock has moved within a range of $1.3500 – 1.4400 after opening trade at $1.37.
Western Uranium & Vanadium Corp. Closes Non-Brokered Private Placement
The company announced on Friday that it had been successful in completing a private placement of a non-brokered nature for as many as 376,966 units. The company noted that it had sold all those units for C$1.60 each and managed to generate gross proceeds to the tune of as much as C$596,746.
In this context, it is important for investors to note that each unit offered by Western Uranium & Vanadium was made up of one common share in the company and one share purchase warrant. The warrant holder is going to have the right to pick up a share in Western Uranium & Vanadium for C$2.50 up until three years since the day of the closing of the offering. At this point, it is going to be interesting to see if the stock can manage to arrest the slide.
WSTRF stock is trading below the 20-Day and 50-Day Moving averages of $1.59 and $2.17 respectively. However, the stock is trading below the 200-Day moving average of $2.09.