There were many stocks which recorded alarming drops on Wednesday and one of those was that Sportsquest Inc (OTCMKTS:SPQS) stock. The stock suffered from a heavy selloff yesterday and tanked by as much as 39%.
While there was no news about the company yesterday, the selloff in the stock might actually be related to a key development regarding the Sportsquest’s ownership structure back on July 16. Back on July 16, it emerged that one of the majority shareholders in the company, Zoran Cvetojevic, managed to wrest controlling interest in Sportsquest from its Chief Executive Officer Jeff Burns.
That is a major development for any company and brings with it an element of uncertainty among investors. However, in this regard, it is important for investors to have a better idea about Cvetojevic.
At this point he remains a preferred shareholder at Sportsquest and has also been elected to the company’s board. Cvetojevic is a financier and over the course of his career, he has also been members of the boards of many publicly listed companies. More importantly, in most of these roles, he was part of a management which was working towards the work related to the turnaround of the company.
Market Reaction:
On Wednesday, SPQS stock slumped 39% at $0.0043 with more than 530.33 million shares, compared to its average volume of 68.01 million shares. The stock has moved within a range of $0.0026 – 0.0080 after opening the trade at $0.0068. Over the past 52-week, the stock has been trading within a range of $0.0001 – 0.0088.
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