EastCoal Inc. (TSX: V.ECX, Stock Forum) said that it has received a ruling from the TSX Venture Exchange stating that it no longer requires the company to proceed with a rights offering at a post consolidated share price of 20 cents per share which was first announced in the company's press release of June 3, 2013.
On May 30, 2013, the company agreed to complete such rights offering in return for the TSX-V's relaxation of certain pricing rules in the context of the private placement.
According to the East Coal press release, in a letter dated Oct. 8, 2013, the TSX-V informed the company that it will not require the company to complete such rights offering.
The Board is also pleased to announce that the company's Verticalnaya North mine, located in southeast Ukraine, has now reached a run of mine production rate of 3,000 tonnes per month equivalent and that it has commenced washing the coal at the neighboring wash plant. The company has also completed its first coal sales.
As previously noted in the company's Management Discussion and Analysis dated August 29, 2013, the company's continued operations are dependent upon its ability to raise additional funding.
The Board is therefore looking at a number of alternatives for future financing and holding discussions with potential investors. A decision is expected shortly.
EastCoal is an exploration, development and production company focused on assets in Ukraine.
On Thursday, EastCoal soared 64.3% and was trading at $0.115 a share. The company had a market cap of $8.4 million, based on 72.8 million shares outstanding.
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