Why Did Foothills Exploration (OTCMKTS:FTXP) Stock 20% On Tuesday?
It was a fairly good day in the markets for investors in Foothills Exploration (OTCMKTS:FTXP) as the company’s stock went up by as much as 20% following a key new announcement from the oil and gas exploration firm.
Trading Data
On Tuesday, FTXP stock jumped 20% to $0.0003 with more than 7.45 million shares, compared to volume of 87.11 million shares. The stock moved within a range of $0.0002 – 0.0003 after opening trade at $0.0003.
Foothills Exploration Announces Retirement And Settlement Of A Dilutive Warrant
The company announced yesterday that it had concluded a settlement agreement and made a payment in order to cancel a warrant that may have led to dilution of its stock. It should be noted that the move was part of a larger strategy from Foothills to either settle or retire all of its debts as well as related warrants which are convertible in nature. The initiative was launched by the company in order makes its balance sheet stronger and to make the company suitable for future growth.
The latest announcement was with regards with a settlement agreement that Foothills had reached with an institutional investor. Following the settlement, all the remaining warrants that had been issued back in 2019 had been cancelled and retired.
In addition to that, as many as 498,086,349 irrevocable share reservations that had been held by the Foothills’ transfer agent had also been cancelled. Investors could consider keeping an eye on the stock over the coming days.
Key Quote
“This agreement is a pivotal step as we continue tightening our balance sheet and working towards becoming a fully-reporting company with audited financials,” said Bruno P. Allaire, the Company’s Chief Executive Officer. “Management is delivering on its promise to clean up the dilutive components of the Company’s balance sheet and taking decisive action to eliminate all toxic debt and minimize future dilution risk to shareholders. This move prevents the potential for up to one billion shares or more of our common stock from flooding the market,” continued Allaire. “The Company looks forward to partaking in sensible and rational discussions with its two remaining convertible note and warrant holders intended to reach the best possible outcome for shareholders, while also supporting the Company’s future growth plans,” ended Allaire.
Technical Data
FTXP stock is trading below the 20-Day and 50-Day Moving averages of $0.0003 and $0.0003 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0004.
