The Healthier Choices Management Corp (OTCMKTS:HCMC) stock was back in action yesterday after the company announced the expiration of its rights offering. The announcement from the company resulted in greater interest in the Healthier Choices stock and it ended the day with gains of around 4%.
As per the announcement from the company about its rights offering in the past, investors were entitled to pick up common shares in the company for a subscription price of $0.0010 a share. They represented a 25% discount on the share price, but the rights are no longer exercisable as the offering expired yesterday.
However, it should be noted that the whole thing turned out to be a quite lucrative for Healthier Choices. The company announced that the total number of subscription rights that were actually exercises added up to around 27 billion shares.
That is a staggering figure and on top of that, initial estimates suggest that Healthier Choices is going to get gross proceeds of as much as $27 million from the right offering. It is necessary for investors to keep in mind that the final amount that is going to be received by the company from this offering is yet to be finalised and is going to be verified by the subscription agent.
The announcement of the closing of the rights offering was an important one for Healthier Choices since last month there had been some confusion with regards to the date. Some of the brokerage houses had offered dates which were earlier than the original closing date and eventually Healthier Choices had to extend the deadline.
In addition to that, even after the extension, the deadline set by different brokers continued to be different, and earlier this month, the company sent out a press release specifying the different deadline dates offered by different brokerage houses. However, the whole thing is now closed and it is going to be interesting to see if the Healthier Choices stock can add to its gains today or not.
