Umbra Applied Technologies Group Inc (UATG) Stock Surges 25%: Here is Why
Stocks that make strong gains on a certain day are almost certainly known to get further attention the following day. By that token, it may be a good time for investors to consider keeping track of the Umbra Applied Technologies Group Inc. (UATG) stock this morning. On Monday, it was in sharp focus among investors after it ended up with gains of as much as 25%. The company announced on December 11 that it had made an agreement with a lending partner for the purpose of supporting the growth of H20 Processing, its subsidiary unit.
The company’s private equity partner provided Umbra Applied Technologies Group with the requisite strategic growth capital. The capital would help in supporting iron mitigation system production. The systems are meant for removing iron ions from crude oil. In the news release yesterday, the company further noted that the initial batch of systems had entered the production stage.
The systems would be delivered to the customer sites over the course of the coming weeks. The company’s obligations pertaining to debt financing would be repaid through the proceeds of production. The timing for the first payment had been set in such a way that it would allow the company to build the units, deliver them, place them into operations, and then generate the requisite cash flow prior to the payment.
It was also revealed that it would be possible for Umbra Applied Technologies Group to take care of the requirements through traditional financing sources as well, due to the financing deal. Stan Abrams, the Chief Executive Officer of H20 Processing, spoke about the development as well. He noted that the company put in a lot of work in conjunction with Umbra Applied Technologies Group to secure the funding necessary for its new iron removal system.
