The holding company Branded Legacy Inc (OTCMKTS:BLEG), which is primarily involved in developing hemp and CBD laced beverages commercially, saw its stock take a dive yesterday and end the day with a decline of 3%.
Market Reaction
On Tuesday, BLEG stock fell 2.74% to $0.0320 with more than 12K shares, compared to its average volume of 17K shares. The stock moved within a range of $0.0320 – 0.0320 after opening trade at $0.0320.
Branded Legacy, Inc. Eliminates Over Three Hundred Twenty Thousand in Debt
Yesterday the company announced that it had been successful in eliminating as much as $232,280 of its debt. It goes without saying that it was a major announcement from the company and perhaps a positive one. However, investors did not see it that way and the stock suffered from a bit of a selloff. It will be interesting to see if the stock can actually manage a recovery over the coming days.
After the elimination of the debt, the valuation of the promissory notes at Branded Legacy stood at $15,470. The company’s management had actually been involved in negotiations with a debt holds and eventually decided to pay down all of its notes back in 2021 and some more from 2020. The company paid down those debts through the issuance of preferred stock. There is a vesting period of a year with regards to the freshly issued preferred stock. Investors could do well to keep an eye on the Branded Legacy stock today.
Key Quote
Brandon White, President of Branded Legacy, Inc., stated, “I am grateful to announce the retirement of this debt. The Company is already showing progression in its revenues, and it feels good to not be held back by this liability. We are preparing our sales team with a portfolio of products that will continue to grow Company sales and continuously improve its cash flow.”
Traders Review
BLEG stock is trading below the 20-Day and 50-Day Moving averages of $0.0334 and $0.0350 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0478.
