Triton Emission Solutions Inc (OTCMKTS:DSOX)
Triton Emission Solutions Inc (OTCMKTS:DSOX) shares skyrocketed almost 600% today on exceptionally heavy volumes. Yesterday the Canadian company closed at $0.0047 per share. By the end of today’s trading DSOX shares were worth $0.0325. DSOX has a 30-day average daily volume figure of just 40,489 but today over 8.2 million shares were traded. A review of new on the company’s websites and the traditional financial media outlets failed to reveal any news that might account for such a strong move. Triton Emission Solutions Inc (OTCMKTS:DSOX) is engaged in developing and marketing emission abatement technologies for the marine industry around the world.
A possible, though unconfirmed, explanation may be found in the 10-K filed by Triton Emission Solutions Inc (OTCMKTS:DSOX) in mid-April. KF Business Ventures, LP (“KFBV”), a company controlled by a director of the Company, is a lender to Triton. Triton is currently in default of the loans but KFBV has not yet served Triton wit notice of default. On December 17, 2015, Triton agreed to decrease the exercise price for amended warrants and September warrants from $0.50 per share to $0.10 per share and extend the expiration date of warrants to January 15, 2021. In addition, the Triton exercised its option to extend the maturity of the first KFBV loan to January 15, 2017, by issuing the lender 1,194,332 first extension warrants, being an equivalent to one-half of the outstanding principal and unpaid interest on the first KFBV loan as at January 15, 2016. First extension warrants have an initial exercise price of $0.10 per share expiring on September 1, 2021.
However, in September 2016, Triton Emission Solutions Inc (OTCMKTS:DSOX) issued an unsecured promissory note to KFBV for gross proceeds of $110,000. As part of the terms of the KFBV note Triton agreed to grant KFBV the right to offset the cash payable by KFBV to exercise the warrants to purchase shares of Triton’s common stock against the corresponding amount Triton would have to pay for the outstanding indebtedness due to KFBV. Is it possible that the warrants were exercised today by KFBV?
Typically, such large volume increases accompany news of unforeseen additional earnings in the pipeline, a corporate action, or an event that would impact the entire sector. However, no such news is being published at the time of this writing.
I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.
About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.