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Zacapa Resources Ltd (OTCMKTS:ZACAF) Stock In Focus After Settling Debt For Equity

Madison Hall , , , ,

As another trading week starts there are going to be plenty of stocks which are going to come into focus among investors and one of those could be the Zacapa Resources Ltd (OTCMKTS:ZACAF) stock.

Trading Data

On Friday, ZACAF stock moved down 4.38% to $0.0742 with more than 15K shares, compared to its average volume of 18.20K shares. The stock moved within a range of $0.0740 – 0.0742 after opening trade at $0.0740.

Zacapa Settles Debt For Equity

The company came into the news cycle this past Friday after it announced that it had reached an agreement for settling an outstanding debt to the tune of C$209,703. The debt had been owed to an arm’s length creditor. Zacapa announced that it was going to pay off the debt by issuing as many as 2,097,033 common shares priced at $0.10 each. It was a significant announcement from the company and one that may bring it into focus among investors.

The members of the Board of Directors concluded that it was in the company’s interests to settle the debt through the issuance of shares since cash preservation was important in order to fund its current operations. It should be noted that the closure of the transaction in question is going to be dependent on certain conditions and that includes the approval of the TSX Venture Exchange. It is going to be interesting to see if the Zacapa stock gets any traction today or not.

Madison Hall

After graduating from the University of Buffalo, Madison gained a real interest in the markets. She tends to be a swing trader and enjoys Pilates and yoga in her downtime.