HCMC Stock Corrects As Healthier Choices Management Reports Quarterly Earnings
One of the stocks to have been on the radar of several investors in recent weeks is that of Healthier Choices Management Corp (OTCMKTS:HCMC). Earlier on in the week, the company announced its financial results for the quarter that ended on March 31, 2021.
While the results may have been positive, the market did not seem particularly enthused and on Tuesday, the stock fell by as much as 9%. As a matter of fact, it should also be pointed out that the Healthier Choices Management stock has tanked by as much as 30% from its recent high.
In the first quarter, the company managed to generate net sales of $3.5 million, which reflect a decline of 14% year on year. The sale figures last year had been high due to a spike in sales in groceries due to the coronavirus pandemic.
However, the total operating expenses incurred by the company during the period actually went down by 15% year on year to hit $2 million. Healthier Choices Management also saw a 1% year on year decline in the losses as it limited its losses to $696000. On the other hand, the losses adjusted for EBITDA came in at $394000, which reflected a year on year decline of around 9%.
The Chief Executive Officer and Chairman of the company Jeffrey Holman stated that the performance reflects the normalization of sales and also the improvement made by the company in controlling its costs. Earlier on in the month, the company had also made an announcement with regards to its rights offering.
The date of the rights offering from Healthier Choices Management is on May 18, 2021, and people need to purchase shares in the company by 4 p.m. Eastern Time on May 14, 2021. Investors are going to be given the right of buying one non-transferable subscription right each block of four shares that he owns.