Root9B Holdings Inc (NASDAQ:RTNB)
Shares of Root9B Holdings Inc (NASDAQ:RTNB) more than doubled in value after the company announced it had secured incremental funding of $500,000 that will allow it to meet its financial obligations. The rally also came a day after the company confirmed it had received a foreclosure notice from Centriole Reinsurance Company.
Root9B Stock Performance
Tuesday’s 136.51% rally helped reverse, be it in the short term, a strong downtrend trend on the stock. However, the stock of Root9B Holdings Inc (NASDAQ:RTNB) continues to trade near all-time lows in a $1.16-$3.80 trading range. The stock has come under immense selling pressure ever since the company’s financial health was questioned prompting a sell-off from highs of $12 a share last month.
Root9B Holdings Inc. (NASDAQ:RTNB) Holdings is a Cybersecurity company focused on providing advisory services in regulatory risk mitigation, energy, and control solutions. The firm’s cyber solution segment offers cyber security advanced technology training as well as operational and consulting services.
Investors have in the recent past started to question Root9B Holdings Inc (NASDAQ:RTNB)’s ability to continue operating as a going concern given the financial woes it is grappling with. The company has received a foreclosure notice because of its secured indebtedness, paving way for secured creditor’s agents to auction the company’s assets. The auction, to take place on August 31, 2017, is expected to raise funds for paying the company’s debts.
In a bid to prevent a mass sell-off of Root9B Holdings Inc (NASDAQ:RTNB) assets, the management team says it is working with senior creditors and other potential investors to raise funds before the auction date.
“While the Company is continuing its efforts to secure additional working capital and obtain waivers from the secured creditors it is unaware of any developments or information that would account for the significant volume of trading in our shares,” said Eric Hipkins, RTNB’s Chief Executive Officer.
New Funding Reprieve
A 136% rally came after reports the company was gaining substantial ground in its push to raise funds to prevent an asset sale. Root9B Holdings Inc. (NASDAQ:RTNB) has already secured $500,000, money it plans to use to meet its payroll obligations in addition to financing other working capital purposes. The company raised the funds by issuing convertible promissory notes along with warrants for the purchase of common stock at par value of $0.001 a share.
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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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.