First Colombia Gold Corp (OTCMKTS:FCGD) galloped by a huge margin during the previous trading session and became one of the most active OTC stock on the exchange. The tremendous surge in the stock was unexplained as there was no new information or update from the company to affect such an increase. The company released a press note last week stating that it has acquired Triangle Restaurant Group.
Diversifying business
This is the first step taken by the company to diversify its portfolio. Triangle Restaurant Group is a private company that developed a number of fast food franchise brands over the past five years. First Colombia Gold Corp (OTCMKTS:FCGD)’s CEO Jason Castenir said that the acquisition is part of the company’s strategy to divest from some of its assets and look forward to more acquisitions.
He informed the shareholders that the company has already paid a Two Hundred Fifty Thousand Dollar banknote as a result of which, the company has been able to free up the liens placed on its equipments. Also, the step is taken amid the falling oil prices and accelerating drilling costs.
Some concerns around
At the same time, First Colombia Gold Corp (OTCMKTS:FCGD) welcomed Triangle Restaurant’s President, Mr. Pete Iodice on the board. Other than this, the company has also secured an equity line of credit from Iconic Holdings LLC. The funds raised through such line of credit are cost effective and will help the company to finance its operations and execute acquisitions. The company has also significantly reduced its cost overheads through restructuring of business processes.
Despite these positive developments, questions linger on the share structure of the company, which is not convincing. As on Tuesday, the stock price of the company went up by 150% to $0.00050 and an average volume of 34.90 million shares traded on the exchange.
