Pennexx Foods Inc. (OTC: PNNX) Closed Up, Unusual Volume Stock to Watch
Shares of Pennexx Foods Inc. (OTC: PNNX) surged 9.89% in Thursday’s session, with more than 2.36 million shares traded hands, well above its average volume of 94K shares.
On October 10, 2023, the company announced that it had created two new categories of stocks, Series A and Series B. The Series A stock cannot be converted into common stock, but it would have voting powers at Pennexx. The Series B shares had been created so that the company could provide them to some of its major employees as performance-based incentives. At the time, Pennexx Foods revealed that the details of the transactions would be revealed in the third fiscal quarter filings.
By way of the agreements, it had been possible for the board of directors of the company to use the Series A shares to limit the outstanding shares at Pennexx Foods to around 60 million shares. It had done so through the exchange of common stock held by a major shareholder with Series A shares, which were unconvertible.
The move helped the company maintain its level of dilution. The authorized share level stood at 150 million at the time, and that left it with considerable ability to raise further funds in the future if it so chose. The Series B shares would provide the company with the option of making a higher quality of appointment due to the possibility of offering incentives.
