Taronis Fuels Inc. (OTCMKTS:TRNF) Stock Rockets 70% in a Week: Here is Why
Taronis Fuels Inc. (OTCMKTS:TRNF) is up 70% in a week. The company had announced a common stock private placement and prepayment of its outstanding debentures. The renewable and sustainable fuel products producer sold 173,913 of its common shares at $5.75 to an unrelated accredited investor.
Total proceeds from the placement were $1 million, and the Taranis used $941,105 in retiring all its outstanding secured convertible debentures. The debentures issued in August 2020 have an interest rate of 18% and were convertible into a common share at a considerable discount relative to recent prices.
The company’s CEO and President, Kevin Foti, said that the transaction clears the unfavorable financing that the previous management executed. Equally, it advances the current management team’s objective of deleveraging Taronis Fuels and minimizing capital cost. He added that while this amount involved seems small, these kinds of transactions will help position the company for future profitability. As a result, TRNF is a stock to watch in the coming months.
Market Reaction:
On Thursday, TRNF stock jumped 2.63% to $6.91 with more than 57K shares, compared to its average volume of 27k shares. The stock has moved within a range of $6.73 – 6.95 after opening the trade at $6.85 Over the past 52-week, the stock has been trading within a range of $2.25 – 12.07.
