There are many investors who are now interested in companies which are involved in the blockchain space but in recent times many such stocks have actually performed poorly. One such company is CurrencyWorks Inc (OTCMKTS:CWRK), which is regarded as a pioneer in the blockchain industry.
However, the stock was in a downward spiral yesterday and tanked by as much as 24% after the company announced that it signed security purchase agreements with some institutional investors. As per the announcement from the company, the institutional investors are going to pick up as many as 4687500 shares of the CurrencyWorks common stock.
However, that is not all. In addition to that, the institutional investors are also going to get warrant to purchase 4687500 units of the common stock. The price for acquiring one share of the common stock and a solitary warrant for acquiring one share of the common stock has been set at $0.80. It should be noted that the exercise price for the warrants has been set at $1 a share and it can be exercised immediately or within five years from the date of issuance. The move from the company has however not been met with much enthusiasm by the market and remains to be seen if the CurrencyWorks stock can recover today.
Market Reaction:
On Monday, CWRK stock plunged 24% at $0.7608 with more than 1.58 million shares, compared to its average volume of 428k shares. The stock had moved within a range of $ 0.7500 – 1.0200 after opening the trade at $1.02. Over the past 52-week, the stock has been trading within a range of $0.5260 – 3.7000.
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