Deer Horn Metals Inc (CVE:DHM
) (PINK:GODYF) stock price tanked after the company finalized their latest financing round.
DHM lost 16.7% on Wednesday under a trading volume of 972 thousand which was 6 times heavier than the average of 159 thousand.
Despite the heavy volume the price didn't change at all during the day, it simply opened much lower. Such a situation means there's likely some sort of manipulation by market makers. Still it should attract attention right now as many stock screeners will pick up the huge volume and price changes.
Since the company also had news the upcoming trading session might get interesting. On June 20 the company declared to have closed a recently announced non-brokered private placement. Deer Horn sold over 3 million units priced at 10 cents each, collecting proceeds of $304 thousand. That was less than a half of what the company was expecting to get. On May 1 Deer Horn said they will be going for $700 thousand.
The amount that was actually raised doesn't look very impressive but it still around 16% of the company's current market value and is significant for the business. The money will be used for general working capital.
Deer Horn had nearly $700 thousand in liquid assets at the beginning of the year, and their book value totaled $804 thousand.