Foothills Exploration Inc (OTCMKTS:FTXP) was in considerable focus among investors yesterday and ended up with gains of as much as 33%. While it is true that the gains in the stock were notable, it might also be necessary to keep in mind that there was no news about Foothills in yesterday.
The last significant news about Foothills emerged back on June 24 when the oil and gas exploration company announced that it signed settled agreements, repaid and also retired all but one of its convertible promissory notes. The one remaining promissory note that still remains is a variable rate convertible note.
It is a major development for the company and is a part of Foothills’ larger strategy this year to either eliminate or settle the outstanding variable rate convertible debts on its books. This move is aimed at strengthening the balance sheet and also positioning the company so that it can grow strongly in the future.
The decision to settle, repay and retire the convertible promissory notes is hence a step in the right direction for Foothills. While it was a major development, it is still unclear why the stock rallied strongly on Monday and hence, it might be a good idea for investors to keep an eye on any news about the company in the coming days.
Market Reaction:
On Monday, FTXP stock moved up 33.33% at $0.0024 with more than 359.81 million shares, compared to its average volume of 182.38 million shares. The stock had moved within a range of $0.0018 – 0.0028 after opening the trade at $0.0018. Over the past 52-week, the stock has been trading within a range of $0.0002 – 0.0155.
 Stock Continues to Move Up: Now What?){kind=link}