Foothills Exploration Inc (OTCMKTS:FTXP) stock is moving up in the opening session on Thursday after the news. The stock has seen solid buying activities over the past week with a jump of 35%.
Major Trigger:
FOOTHILLS EXPLORATION, INC. ANNOUNCES ELIMINATION OF MORE THAN $1.6 MILLION OF OUTSTANDING VARIABLE-RATE CONVERTIBLE DEBT
Key Highlights:
- FTXP announced that the Company has reached settlement agreements with and/or repaid and retired convertible promissory notes with all but one of its variable-rate convertible noteholders.
- For the remainder of 2021, the Company’s intended strategy is to settle and eliminate its outstanding variable rate convertible debt to clean up its balance sheet and better position itself for future growth.
- To that end, the Company has reached settlement and mutual release agreements with and/or repaid and retired convertible promissory notes with all but one of its variable-rate convertible noteholders. Over the past 100 days, the Company has paid $1.6 million to retire 10 variable-rate convertible promissory notes.
- The Company notes that all of its outstanding capital obligations to its convertible noteholders were subject to conversion at a significant discount to the stock’s current trading price. However, as a result of the Company’s move to eliminate these obligations, no related conversions will take place.
- In place of the variable rate convertible notes, the Company has taken on several fixed rate convertible notes from the same lender with a conversion price set above the market, which it plans to refinance prior to maturity.
Market Reactions
As of 9:56, FTXP stock jumped by 17% at $0.0028. Total volume so far stood at 257.31 million shares, compared to its average volume of 229.82 million shares. The stock moved within a range of $0.0022 – 0.0028 after opening at $0.0024.
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