Will The Rally Continue? Enerkon Solar International Inc (OTCMKTS:ENKS) Stock Rockets

Enerkon Solar International Inc (OTCMKTS:ENKS) was the notable gainer in the Monday’s trading session on Monday after the news.

Market Reaction

On Monday, ENKS stock soared 106% to close at $0.8850.Volume was hefty with more than 3.95 million shares traded hands, compared to its average volume of 302K shares. The stock moved in a range of $0.4300 – 0.8889 after opening at $0.4490.

Major Trigger:

Enerkon Solar International Inc. (ENKS) Announced Second Phase – Stock Buy Back Today, Which Will Significantly Reduce the Company’s Outstanding Common Stock, Raising ENKS Book Value per Share

Key Highlights:

• issued the following statement through the Companies’ CEO MR. Benjamin Ballout who stated:
• “Today the company agreed to embark the second phase of a robust share buyback campaign which is in the form of a second buy back action – constructed as a compulsory Restricted Non-Affiliate Conversion to Preferred Shares with an Option exercise price of $7.00 and a dividend in cash or kind in the amount of 8% payable quarterly – in arrears.”
• “The company will publish the restricted shareholdings (non-Affiliate) numbers effected as a % of total outstanding shares through the Company PROFILE UPDATE ad validation on the OTC Markets Website via OTCIQ – and this would be reflected on conversion in stages as conversions come across and are processed or as shares are canceled with compulsory conversion automatically retiring the Restricted shares back to treasury with simultaneous issuance of Preferred Restricted shares as structured above.”
• Previous to this action, the Chairman retires to treasury of the company 25,250,000 shares held by him over the past 3 years in exchange for 252,500 preferred shares with $7.00 Exercise option and 8% dividend in cask or kind payable quarterly in arrears – this being about 30% of outstanding shares, whereas this second phase buy back will represent a cumulative total of nearly 80% of total outstanding shares cancelled and retired to treasury in exchange for preferred – this being a 100:1 conversion ratio for which the second phase will also be executed by the same ration value of 100:1 – At $7.00 the holders can opt to convert back on their options to the original shareholding positions against an exercise ratio formula back to common should the price be maintained for 30 days average at $7.00.