Over the course of the past week Pure Energy Minerals Ltd (OTCMKTS:PEMIF) has seen its stock go through a steady selloff and during the period, the stock has gone down by as much as 12%. In light of such a decline, it may be a good idea for investors to take a look at the development from yesterday.
Market Reaction
On Monday, PEMIF stock fell 2.20% to $0.8998 with more than 25K shares, compared to its average volume of 49K shares. The stock moved within a range of $0.8700 – 0.9030 after opening trade at $0.8721.
Key Details
On Monday the company announced that it was going to issue as many as 178211 shares for the price of $1.209 each. However, all that is going to happen only after the requisite regulatory approval is awarded. The issuance of the shares is going to be made as per the provisions in an agreement that Pure Energy Minerals has in place with an advisor.
It was a major new announcement from the company and one that is expected to be watched closely by investors. At the end of the day, issuance of new shares almost always has an effect on the price action in the stock and hence, it could be a good idea to keep track of the Pure Energy Minerals stock in the coming days. The company is involved in the lithium resources development space and seeks to be a low cost supplier.
Traders Review
PEMIF stock is trading below the 10-Day and 20-Day Moving averages of $1.01 and $0.96 respectively. However, the stock is trading below the 200-Day moving average of $1.17.
