Many investors may have noted that despite making a key announcement from the company yesterday, the Angold Resources Ltd (OTCMKTS:AAUGF) stock traded in a range.
Market Reaction
On Thursday, AAUGF stock ended flat at $0.1275 with 2 shares, compared to its average volume of 10.40K shares. The stock moved within a range of $0.1275 – 0.1275 after opening trade at $0.1236.
Angold Announces $3 Million Marketed Public Offering of Units
However, stocks trading in a range can also break out strongly and hence, it may be a good time to actually look into the announcement a bit more closely. Yesterday, the company announced that it had completed an agreement with the firms CanaccordGenuity Corp and Research Capital Corporation. As per the provisions of this particular agreement, the two firms are going to be the joint book runners and co-lead agents in a marketed public offering of units.
It was also announced that in the aforementioned offering, the company was going to look into raising as much as $3,000,000 and was going to set the price of each unit at $0.14. It goes without saying that the announcement was a significant one and could have considerable effect on the company’s immediate future.
However, there was not much of a reaction from investors yesterday. It is now going to be interesting to see if the stock can actually manage to come into focus today or not among investors.
