Healthier Choices Management (HCMC) Stock Suddenly Soars 25%: Here is Why
Over the past week or so, the Healthier Choices Management Corp (OTCMKTS:HCMC) has been on the radars of many investors owing to the company’s rights offering. As everyone knows, a rights offering is an important event and can prove to be quite popular among the existing shareholders of a company.
Last week the company announced that the extension of the rights offering to June 10, 2021, since there had been some confusion regarding cut-off dates. The original cut off date for the offering had been set for June 3, 2021. The company claimed that it had got reports in which some custodians and brokers had misled clients by informing them of an earlier cut-off date.
The company further informed that shareholders and some of the international investors of the company had been told by their brokerage firms that the cut off date was May 28, 2021. Hence, the cut off date was extended by Healthier Choices Management Corp so that all investors could participate in the rights offering. The rights offering has been one of the more important events for the company in recent times.
The company announced that the whole thing had commenced on May 19, 2021 and investors were told that subscription rights had been made available through their brokers, dealers and banks among others.
That was however not the only important development in relation to Healthier Choices Management Corp last month. Back on May 10 the company announced its financial results for the first fiscal quarter ended on March 31, 2021. During the period, the company managed to generate net sales of $3.5 million, which reflected a decline of 14% year on year.
That being said, it is also necessary to point out that in the same period last year, the company’s sales had surged owing to the significant rise in sales in the grocery department during the COVID 19 pandemic. On the other hand, total operating expenses declined by 15% year on year to $2 million.