Gediminas Jasionis
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Everton Resources Inc (CVE:EVR) (PINK:EVRRF) Sees A Setback In Price

by Gediminas Jasionis Jun 27, 2011
evr_chart.pngEverton Resources Inc (CVE:EVR) (PINK:EVRRF) stock saw a setback on a seemingly strong price rally after the company canceled their plans to raise another $5 million for working capital.

Share price reverted back down over the last couple days of the last week after rallying up for the three consecutive days on promising trading volumes. The trading volume went down dramatically, so this sudden reversal might extend further down, especially considering there are important news in play.

EVR stopped to decline just below a loose support of 30 cents which has now become resistance.

everton_resources_logo.jpgEverton stated last Wednesday they have canceled the previously declared plans to raise $5 million through equity offering. The company's president and CEO Andre Audet blamed the decision on adverse market condition and stated the company is currently in position to survive without the additional funding.

The plans for funding were put aside until the management decides the time is right. In the meantime the company continues to advance with their drilling plans. The company has $3.4 million in working capital and no long term liabilities.

They are an exploration stage company and have no revenues, thus raising money through equity offerings is a common practice.

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