ROCKY MOUNTAIN HIG COM USD0.001
ROCKY MOUNTAIN HIG COM USD0.001 (OTCMKTS:RMHB) felt the wrath of Wall Street after announcing an increase in the number authorized common stock to 4 million shares. The stock fell 23.2% as investors remained jittery about the potential impact of the stock dilution.
RMBH Stock Performance
Thursday’s sell-off saw the stock break a key support level to sink to multi-year lows. The sell-off brought to an end an impressive run that has seen the stock surge to highs of $0.15 a share. The stock is on the brink of registering a new 52-week low.
ROCKY MOUNTAIN HIG COM USD0.001 (OTCMKTS:RMHB) has come under pressure in the wake of unexpected management changes that continue to fuel concerns about in goings in the company. Early this month Gerry David and Kevin Harrington announced their resignation from the Board of Directors in unclear circumstances. However, the two will remain consultants providing guidance and direction whenever required.
“I made a conscious decision to cut back on the number of Board commitments that I currently have. The Rocky Mountain High Board is very time-consuming from an administrative and corporate governance standpoint,” said Mr. David
Following the resignation of the two, ROCKY MOUNTAIN HIG COM USD0.001 (OTCMKTS:RMHB) says Chief Executive Officer Michael Welch and General Counsel David Seeberger will now serve as Board members.
Use of Authorized Shares
The increase in authorized shares is another headwind that continues to plague the consumer goods company that specializes in hemp-infused food and beverage products. However, the Chief Executive Officer has sought to quash the concerns by reiterating that the increase which will come into effect in 20 days is highly needed if the company is to attain its long-term goals.
According to Mr. Welch, the increase will make it easier for ROCKY MOUNTAIN HIG COM USD0.001 (OTCMKTS:RMHB) to pursue equity financing needed to finance a number of growth development projects. Issuance of the new shares should also allow the company to get additional funding that it can is to pursue acquisition opportunities poised to accelerate the next phase of growth.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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