Q: Elkwater was highly recommended by a BNN guest around July 30th, when it was approximately seventy cents. It traded 12 million shares the next day and subsequently doubled due to the rights offering, giving the company a hefty market cap considering it had no deals signed.
Now, it's twenty cents and still trading heavily. Investors who bought in August have taken a big hit and the share price action seems a little unusual, to say the least.
Is it possible the .375 cent private placement will be re-priced or cancelled due to market conditions or is it a bought deal and completed?
Would you buy this company at current levels?
Thank you.
Now, it's twenty cents and still trading heavily. Investors who bought in August have taken a big hit and the share price action seems a little unusual, to say the least.
Is it possible the .375 cent private placement will be re-priced or cancelled due to market conditions or is it a bought deal and completed?
Would you buy this company at current levels?
Thank you.