IC Potash Corp. (TSE:ICP
) (PINK:ICPTF) stock price gaped up after the company confirmed a significant strategic investment and a new large scale business contract.
ICP stock price added 21.3% after the opening bell and managed to attract a trading volume of over 2.3 million halfway through the trading session.
IC Potash got all the attention after a strategic investment was made by Yara International ASA (PINK:YARIY). The firm bought $40 million worth of stock at around $1.32 per share. Furthermore they have signed a commitment to purchase 30% of all products produced by IC Potash's Ochoa project for a period of 15 years.
The companies also consider to engage in further discussion about a creation of a new mutual entity for marketing purposes.
The strategic investment also means the company can expect further support from Yara if things are to go sour. Yara is one of the big players in fertilizer business, operating among top distributors of plant nutrients.
The fact that share price didn't reach around $1.30 on the open market shows a slight mistrust from traders. The biggest concern here whether the company will be able to operate as it was or Yara will want to influence their business practices. A creation of a mutual new entity would also get the companies one step close to an actual merger, although the idea is not on the table at the moment, which might not be in best interest of the current ICP shareholders.