Liquid Media Group Ltd (NASDAQ: YVR) is screaming for the top in the market this morning, following up on the strong gains we saw out of the stock yesterday. The gains come after the company announced that it has closed a previously announced direct offering. Here’s what’s going on:
Liquid Media Closes Registered Direct Offering
As mentioned above, Liquid Media Group is running for the top in the market this morning after announcing that it has closed a previously-announced direct offering.
The registered direct offering included 1,791,045 shares of the company’s common stock, which were sold at a purchase price of $3.35 per share.
All told, the company was able to raise about $6 million through the offering, which it will use for working capital purposes, expanding existing businesses or acquiring or investing in businesses, debt reduction or debt refinancing, capital expenditures, and other general corporate purposes.
So, what does this have to do with the fact that Liquid Media Group stock is making its way for the top?
Well, with the closing of the offering, investors can look forward, knowing that there’s no reason for additional dilution in the near term.
Without dilution on the horizon, there could be pretty exciting times ahead.
A Short Squeeze In Play
The gains also seem to be part of a short squeeze in play.
At the moment, Liquid Media Group stock trades with short interest of around 17%. That’s a big number, and when heavily shorted stocks start to tick up, investors who decided to short the stock must race to buy shares.
After all, shorting is the process of buying shares and selling them into the open market with the goal of buying them later at a lower price. When the price ticks up, shorts lose money and race to buy shares, resulting in tremendous gains in volume as well as compelling price appreciation.
At the same time, with a public float of around 9 million shares, there’s not much of a share supply out there. So, as demand continues to tick up, we could see dramatic gains in the value of the stock ahead.
All in all, Liquid Media Group stock is one to watch at the moment. The fact of the matter is that with $6 million in new funding now on the company’s books, it’s now sitting with a much stronger balance sheet than it was in the past and doesn’t have the need to raise funds in the near term.
That’s exciting news, and so is the fact that the shorts are being squeezed out. All in all, YVR stock is one to keep an eye on.