There were some stocks which had a tough time this past Friday and one of those was the Skychain Technologies Inc (OTCMKTS:SKTCF) stock. The stock suffered from a strong selloff following a major announcement from the company and ended up with a decline of as much as 28%. In light of such a steep decline, it may be a good time for investors to consider looking into the announcement from the company that led to the selloff.
Market Action
On Friday, SKTCF stock slumped 28.63% to $0.2769 with 235 shares, compared to its average volume of 236 shares. The stock has moved within a range of $0.2769 – 0.2769 after opening trade at $0.2769.
Skychain Closes Private Placement
This past Friday, Skychain announced that it had been successful in concluding its private placement that had been announced back on December 31, 2021. It should be noted that the private placement was of a non-brokered nature.
In this private placement, Skychain issued as many as 2757475 common shares and priced it at $0.42 a share. That led to the company raking in gross proceeds to the tune of as much as $1158140. The company noted that the fresh capital is going to be used for administrative and general expenses.
However, it seems that issuance of fresh shares did not particularly please investors and that probably led to the strong selloff in the Skychain stock on Friday. It now remains to be seen if the stock can make a quick recovery.
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