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Trio Petroleum (NYSEMKT:TPET) stock is falling on Tuesday after the oil and gas exploration and development company amended a securities purchase agreement with an institutional investor.
According to a filing with the Securities and Exchange Commission (SEC), this agreement allows Trio Petroleum to expedite the repayment of a $2 million First Tranche Note. It lists three changes included in this amendment.
- Reducing the Floor Price from 35 cents to 15 cents.
- Issuing 2,395,611 shares of TPET stock instead of the cash payment.
- A new obligation to request payments of $250,000 installments to pay back the remaining $1 million principal balance.
How This Affects TPET Stock
Investors aren’t happy about Trio Petroleum using shares to pay back the First Tranche Note instead of cash. That makes sense as it shows weakness from the company while also increasing outstanding shares. Doing so dilutes the stakes of investors holding TPET stock.
With this news comes strong trading for TPET shares on Tuesday. That has more than 1.1 million units on the move this morning. This is quickly closing in on the company’s daily average trading volume of about 1.7 million shares.
TPET stock is down 37.7% as of Tuesday morning. The stock was also down 32.8% year-to-date when markets closed yesterday.
Investors seeking out more of the latest stock market coverage are in luck!
We have all of the hottest market stories worth reading about on Tuesday! That includes what’s happening with shares of Peraso (NASDAQ:PRSO) stock, Chenghe Acquisition (NASDAQ:CHEA) stock and InVivo Therapeutics (NASDAQ:NVIV) stock today. You can find out more on these matters at the links below!
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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.
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