Very Good Food Company (VRYYF) (CVE:VERY) stock Corrects 13% This Week: Will it Rebound?

As another week come close to winding down, Very Good Food Company Inc (OTCMKTS:VRYYF) (CVE:VERY) stock has emerged as one of the notable losers and has declined by 12.50% so far this week.

The decline in the stock could be related to an announcement made by the company yesterday with regards to a bought deal offering worth $15 million. The plan based food tech firm announced yesterday that it signed an agreement with Canaccord Genuity Corp to be the sole book runner and lead underwriter for the deal.

As part of the agreement, Canaccord has agreed to pick up as many as 4,055,000 units in the company at a price of $3.70 each. The company is going to generate gross proceeds of just over $15 million by way of this bought deal financing agreement. The units are going to be made up of one common share of The Very Good Food Company and one half of a warrant. A whole warrant can be exchanged for a common share in company within 18 month of the closure of this offering. The exercise price has been set at $4.60 for each warrant share.

Market Reaction:

As of 10:28, VRYYF stock moved up 2% to $3.27 with more than 64K shares, compared to  its average volume of 155K shares. The stock has moved within a range of $3.2100 – 3.5550 after opening the trade at $3.21.

Moving Averages

+/- EMA(20)3.56 (-8.43%)
+/- SMA(50)3.69 (-11.65%)
+/- SMA(200)3.83 (-14.88%)

Pivot Points

NameS3S2S1Pivot PointsR1R2R3

Related Posts

About The Author