Healthier Choices Management (OTCMKTS:HCMC) was up more than 100% in intraday trading after announcing it had raised $5 million in equity capital.
Per the company’s Form 8-K filed with the SEC today, the company sold 1,000 shares of Series D convertible stock to institutional investors for $5,000 per share. This preferred stock is convertible to common stock at an initial conversion price of $0.0024, representing a 150% premium over its Friday, Feb. 5, 2021, closing price of $0.0016. That initial conversion price is subject to downward adjustments outlined in today’s SEC filing.
Healthier Choices Management has two main business segments, grocery and vaping products. HCMC stock was recently boosted by renewed interest in a vaping device patent infringement lawsuit against Philip Morris International (NYSE:PM). That lawsuit was announced in November of last year, but picked up investing interest again following a Jan. 26, 2021, post on subreddit r/WallStreetBets. On Jan. 27, HCMC saw trading volume of more than 3 billion shares, compared with an average daily trading volume of 356 million shares.
HCMC stock climbed as high as $0.0046 in intraday trading today. Trading volume at time of writing was greater than 1.3 billion shares, compared with a current average daily trading volume of 560 million shares.
On the date of publication, Vivian Medithi did not have (either directly or indirectly) any positions in the securities mentioned in this article.