In view of the previous trading session, it can be said that Clean Coal Technologies Inc (OTCMKTS:CCTC) has been able to recover from its heavy losses, but such recovery was only marginal. The stock of the company came under pressure following the company’s conference call that took place on Monday.
The update
The stock lost massively even as both the 8-K filing and the conference call updated on Clean Coal’s $1.5 million funding deal. The concerns among the shareholders with respect to the company can be linked to its failure to come up with any form of financial reporting during the last one year.
Further, it is to be underlined that the company’s previous convertible debt was attached with the provisions of conversion of it into shares at discounted price of nearly 25% to 42%. Also, Clean Coal Technologies Inc (OTCMKTS:CCTC)’s 8-K has established that the company is running its operations solely on loans and borrowings, which is adverse from the point of view of shareholders.
The threat
It should be added that the newly raised funding of $1.5 million is again governed by the same terms and conditions as that of the previous Notes. Such a condition means that the debt can be converted into units of 1 common share and a warrant that the purchase of one share can come at an exercise price of as low as $0.10. Needless to say, such conditions are bound to take the direction of the stock price to southwards.
Clearly, Clean Coal Technologies Inc (OTCMKTS:CCTC)’s 8-K and the conference call are self-explanatory about the company’s adventurous deeds. The toxic funding pattern is a threat to both the short-term and long-term value to the shareholders. The reflection of which is obvious in the stock prices of the company.
Clean Coal Technologies Inc (OTCMKTS:CCTC) has been in a strong uptrend since the beginning of the year and has been forming higher highs and higher lows which is indicative of the strong buying interest at lower levels which is a huge positive for the stock. The stock currently trades above all important daily moving averages which is considered to be a bullish sign.. The momentum indicator for the stock has given a sell signal which is pointing towards a shift of momentum towards the sell side. Traders believe the stock could find support near the $0.52 levels whereas encounter resistance near the $0.80 levels
