Gediminas Jasionis
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BioExx Specialty Proteins Ltd (TSE:BXI) (PINK:BIXZF) Stock Climbs Back Up on Financing Announcement

by Gediminas Jasionis Jul 5, 2011
bxi_chart.pngBioExx Specialty Proteins Ltd (TSE:BXI) (PINK:BIXZF) has an astounding start of the month as the price added 16% on a price rally continuing since last week.

BXI stock bounced the bottom just below $1 last week and had a mini gap up subsequently in reaction to the recent financing news. The trading volume doesn't promise anything special though, as 1.3 million was merely above the average of 948 thousand.

The cause of optimism among bulls was the announcement of a $20 million bought deal financing announced last week. The company said to have closed the deal on Thursday, creating heavy interest in their stock.

bioexx_logo.jpgBioExx Specialty sold 20 million units priced at $1.00 each. These units consisted of one common share and one half of a share purchase warrant, which are convertible at $1.50. Underwriters also retained an over-allotment option to purchase addition $3 million worth of units within 30 days after closing of the offering.

The deal basically prevents the share price from dropping below $1 and left space for appreciation up to $1.50 assuming the dilution from warrants conversion would better be avoided at this stage.

Share price appreciation stopped right at resistance at $1.16. Another level that could cause problems for bulls is at $1.37.

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