Planet Green Holdings Corp (NYSEAMERICAN: PLAG) is having an incredibly strong start to the trading session this morning, and for good reason. The company said that it has closed a transaction that has driven important funding into its balance sheet. Of course, the news excited investors who are sending the stock on a run for the top. Today, we’ll talk about:
- The transaction news;
- what we’re seeing from the stock; and
- what we’ll be watching for with regard to PLAG ahead.
PLAG Announces Transaction Closing
As mentioned above, Planet Green is having an incredibly strong start to the trading session this morning after the company announced that it closed a key transaction. In a press release issued early this morning, PLAG said that it has closed a previously announced private placement transaction.
The transaction is the result of an agreement signed between PLAG and Yimin Jin and Hongxiang Yu, both insiders of the company, on August 8, 2018. At closing, PLAG received gross proceeds in the amount of $10 million in exchange for 2,352,942 shares of the company’s common stock, representing a purchase price of $4.25 per share.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of Planet Green Holdings, the news proved to be overwhelmingly positive. After all, the company closed a key transaction, under which insiders of the company paid a tremendous premium and further aligned their interests with those of investors. So, it comes as no surprise that excited investors are sending the stock screaming for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:01), PLAG is trading at $2.59 per share after a gain of $0.38 per share or 16.93% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on PLAG. In particular, we’re interested in following the story surrounding the use of the funding put up by the insiders. Nonetheless, we’ll continue to keep a close eye on the news and bring it to you as it breaks!
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