The Healthier Choices Management Corp (OTCMKTS:HCMC) stock is trading lower this morning after the company announced that it submitted a registration statement on Form S-1 to the United States Securities and Exchange Commission.
As of 10:43 shares of HCMC are trading at .0015 down .0004 for a loss of 21% in the morning session. Volume is a heavy 5 million shares already trading more than its 30-day average trading daily volume. Trading opened at .0019 and has ranged from a low of .0013 to a high of .002.
This registration statement is pertaining to a right offering to the company’s shareholders. The Chief Executive Officer of Healthier Choices, Jeffrey Holman published an open letter to shareholders in relation to this rights offering as well.
While thanking the shareholders for their continued support, he revealed that the company now has 400,000 shareholders.
The company stated:- For every 4 shares of common stock that you own, you will be entitled to purchase 1 share of common stock directly from the Company at a discounted price. This right is referenced to as a “basic right.”
He stated that the company is moving ahead with the rights offering so that Healthier Choices can continue to expand and also protect its intellectual property.
This move will not only raise funding but also ensure that the fresh capital is raised in a non-dilutive manner. Holman was also insistent that the rights offering is not a reverse stock split and should not be confused as such.