Gent Tech Holdings Inc. (OTCMKTS:GTEH) is down 22% in a week. The company has announced a reduction of its authorized share capital by 18% and embarked on a share repurchase initiative.
Market Reaction
On Friday, GTEH stock ended flat at $0.0007 with more than 365.80 million shares, compared to its average volume of 301.76 million shares. The stock has moved within a range of $0.0006 – 0.0007 after opening the trade at $0.0006.
Recent Developments
The company has an effective Reg A and a capital raise cap of 40 billion shares. However, management claims they may meet capital raise goals by reducing the Authorized Share Capital and reducing the number of shares available for additional shareholder dilution. The Authorized Share Capital has been reduced to 33 billion shares as of today, indicating the end of major future dilution as management plans to decrease the Authorized Share Capital further in December 2021.
Gen-Tech will also launch a Share Buy-Back Initiative after the Board initially approved the repurchase of up to 1 billion common stock shares. The Share Buy-Back program, which begins on December 1, 2021, and concludes on December 31, 2021, permits the firm to repurchase its shares on the open market and in negotiated transactions. So, in the coming weeks, GTEH is worth watching.
Key Quote
David Lovatt, CEO of GenTech Holdings commented that “We have had an incredible growth year and that is fueled exclusively through the Reg A that we have had in effect since June 2021. We have had zero reliance on toxic funders and have reduced the debt on our balance sheet by well over $2m in 2021. Our expectations are being exceeded for retail interest, but with that success comes significant additional costs for placement in the stores to drive consumer uptake of the products. We now feel comfortable in capping out our funding raise abilities, but be clear, we will take further action in December to reduce the authorized share capital further, once we are able to judge the success of any share buyback transaction that occurs. 33bn is not the final number, a further reduction will be made at the end of the year.”
Traders Review
GTEH stock is trading below the 200-Day and 20-Day Moving averages of $0.0025 and $0.0008 respectively. However, the stock is trading above the 200-Day moving average of $0.0004. The stock is up 133% so far this year.
