MariaDB (NYSE:MRDB) stock is taking off on Wednesday despite news that the cloud database company has failed to repay a senior secured promissory note issued to RP Ventures LLC.
This note is for $26.5 million, and the company has triggered default actions by not paying it back. That has it entering negotiations with RP Ventures LLC and Hale Capital Partners to replace the note and raise capital through a convertible preferred equity financing.
This sees MariaDB entering into a Forbearance Agreement with RP Ventures LLC. As part of that agreement, the noteholder won’t exercise its rights and remedies despite the company defaulting on the note. MariaDB has also agreed to pay $100,000 to RP Ventures LLC to cover certain fees.
How This Affects MRDB Stock Today
With this news comes heavy trading of MRDB stock on Wednesday. That has more than 11.5 million shares changing hands as of this writing. This is already well above its daily average trading volume of about 91,000 shares.
MRDB stock is up 117.7% as of Wednesday morning but was down 9.6% year-to-date when markets closed yesterday.
It also bears mentioning that MRDB is a penny stock. That means today’s rally might not last as this news brings with it volatility to the shares. Keep that in mind when considering a stake in the company.
Investors who want to know even more about all of the most recent stock market stories are going to want to keep reading!
We have all of the hottest stock market news that traders need to know about on Wednesday! That includes a dive into the biggest pre-market stock movers this morning, the latest news concerning shares of Lucid (NASDAQ:LCID) stock and more. You can catch up on all of these matters by checking out the links below!
More Wednesday Stock Market News
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Wednesday
- LCID Stock Pops as Lucid Motors Announces Partnership With Saks
- Why Is NIO Stock Up 10% Today?
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On the date of publication, William White 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.
