Gediminas Jasionis
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TriNorth Capital Inc. (CVE:TRT) (PINK:TNTHF) Gaps Up Under Effect Of Recent LOI

by Gediminas Jasionis Apr 12, 2012
trt_chart.pngTriNorth Capital Inc. (CVE:TRT) (PINK:TNTHF) stock price gaped up in reaction to the letter of intent that was announced a week ago.

TRT gaped up 57.1% on a trading volume topped 7.35 million, was nearly 18 times heavier than the daily average of 411 thousand. The stock had been halted for a whole week following the initial announcement, thus this is actually a fresh reaction to the news.

TriNorth announced on April 5 they have entered into a letter of intent with Difference Capilta Inc. The latter was proposed to get as much at 49.9% interest in TriNorth for an investment of $4.5 million.

Moreover, if the deal goes through the company would change their name to Difference Capital Funding Inc.

The deal is in contemplation, not a real thing yet, and will require approvals by regulators and shareholders. The company also intends to perform a share consolidation on 1 for 10 basis or similar, depending on how the board votes.

trinorth_logo.jpgThe company has around 151 million shares outstanding which means the proposed price for half the business puts the share price at 6 cents. Traders will likely keep the market pricing close to this value until more news on the deal come out. A slight but steady depreciation is a common thing during the idle time in such cases.

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