The Pedevco Corp (NYSE: PED) stock price is down over 20% in Monday premarket trading. It seems the energy company’s investors didn’t react kindly to its recent purchase agreement.
After finishing last week with strong gains, Pedevco stock has witnessed a sharp sell-off coming into this week, with the stock price currently sitting around $1.80, a significant drop from the Friday closing price of $2.11. With such a loss in momentum, many are wondering what happened to last week’s bull run…
The energy acquisition and development specialist shocked its investors today with the announcement of a security purchase agreement with an unnamed institutional investor. The deal will involve a registered direct offering for the purchase of around $7 million worth of common stock – totalling 4.5 million shares at a price of $1.57. The offer is expected to be completed by Wednesday this week, the 6th of October.
Leaving investors reeling this morning, the agreement has sparked a 20% sell-off before the Monday market open, with the stock price continuing to drop at the time of writing. Losing almost half of last week's gains in a matter of hours, this could prove to be a difficult trading week for Pedevco Corp unless they restore trust with their investors.
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Nigel has been in the regulated financial services industry for nearly a decade, has previously owned a financial brokerage and has written many times for sites relating to personal finance and trading.