Nevada based major cannabis producer and cultivator Flower One Holdings Inc (OTCMKTS:FLOOF) was in focus among investors yesterday after it announced that it had decided to issue fresh common shares to the debenture holders.
Market Action
On Thursday, FLOOF stock ended higher by 4.60% to $0.05 with 379K shares, compared to its average volume of 503K shares. The stock has moved within a range of $0.0470 – 0.0518 after opening trade at $0.0518.
Recent News
The news came as a source of considerable optimism among investors and the stock ended the day with gains of as much as 4%. The company noted that it issued the fresh shares in order to satisfy its interest payment obligations to the tune of as much as C$509,652 and C$111,312, both of which are payable on December 31, 2021.
The sums are going to be paid out for the debentures for March 2019 and November 2019 respectively. However, at the same time, it is also necessary to keep in mind that the act of issuing these common shares instead of actual cash is going to be subjected to the terms and conditions laid down in the indentures.
In addition to that, Flower One will also need the necessary approvals by way of which it will be able to complete the two transactions. At this point in time, it may be a good move to keep the stock in your watch lists.
Traders Note
FLOOF stock is trading below the 20-Day and 50-Day Moving averages of $0.0617 and $0.0772. Moreover, the stock is trading is the oversold zone with RSI stands at 33. The stock is down 28% over the past month.
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