Today, shares of Healthier Choices Management (OTCMKTS:HCMC) have bounced around quite a bit. Investors in HCMC stock are seeing heavy volume today, with nearly one billion shares having traded hands according to data from Yahoo Finance. To put this in context, the average daily volume for HCMC stock is around 267 million shares.
HCMC’s recent stock price surge from the triple-zero range to the double-zero range has enticed some investors to jump aboard. Accordingly, during the speculative mania we saw earlier this year, shares of HCMC stock actually reached a high of more than half a penny.
That doesn’t sound like much. But for a company with approximately 300 billion shares outstanding, that’s a pretty decent sized market capitalization.
Indeed, HCMC stock has generated more news flow today on various reports surrounding the company’s previously announced rights offering. On May 19, Healthier Choices announced it would be issuing a subscription period for a rights offering.
Let’s dive into what this announcement means for interested investors.
Rights Offering Driving Interest in HCMC Stock Today
Today, a number of HCMC investors saw an intriguing holding pop up on their accounts.
A “422rgt019” symbol popped up on a number of investor accounts. Given the day and age we’re now in, Twitter exploded with interest about what this symbol meant. While many initially speculated some sort of reverse stock split or dividend could be at play, investors in the know pointed out the company’s May 19 announcement.
Ok not sure which stock this is? Anyone know? pic.twitter.com/aIPDkirwe5
— Shelley Garcia (@MatzShelley) May 21, 2021
The rights offering appears to provide existing investors with one right per four shares of HCMC stock. This right allows investors the ability to purchase additional shares at a point in time in the future. Similar to warrants, rights offerings are commonly used for small-cap companies looking to raise money.
Given Healthier Choice’s current market cap, and its current stock price level, investors need to be reminded this is a highly speculative company. Accordingly, investors should practice discipline in sizing such speculative positions prudently.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.