Penny Stocks In The News
NEW YORK, NY -- (MARKET WIRE) -- 07/23/08 -- Hunt Gold Corporation (PINKSHEETS: HGLC) confirms that a portion of sale proceeds in respect of its "American Molygold" Mining & Exploration interests in the amount of US$10 million are to be utilized to effect a share buyback of the Company's "free float" of Common Stock.
Given the fact that the Company has 480 million in "free trading" shares, the value of the Company's "free float" is in amount of US$2,000,000, based upon current stock price levels.
There is now little doubt that barring a substantial rise in the price of the Company's stock price, this US$10 million in stock repurchases by the Company, will decrease the Company's "free float" enormously.
Investment Groups who hold voting power over 51% of the Company's outstanding shares of Common Stock are still contemplating a Tender Offer to repurchase a portion of the Company's "free trading" shares. The pricing of this Tender Offer remains under consideration given the extremely undervalued and erratic Stock Price of the Company. Stockholders will be advised accordingly.