Todor Pichurov

Pershing Gold Corp. (OTCMKTS:PGLC) Retreats Again

by Todor Pichurov April 15, 2015

It has been a few slow but steady weeks since we last covered Pershing Gold Corp. (OTCMKTS:PGLC, PGLC message board). In that stretch of time the company's share price gradually regained lost ground. Yesterday brought a sharper drop, with PGLC closing 6.7% down on a considerable bump in daily volume. The stock stopped at $0.362 by the bell.

PGLC has been pinging in with PR on a regular basis but the new announcements have not really had the bombast of its February and early March PR that boasted ever newer record grade gold intercepts. Last week PGLC announced the company's CEO and president, Mr. Alfers, will be a presenter at the annual European Gold Forum.

PGLC also dropped an 8-K on Monday, after the market closed. The filing informs of the sale of 29.7 million units to 'certain accredited investors'. Each unit consists of one share of PGLC common stock, and a two-year warrant to purchase 0.4 common shares, with an exercise price of $0.44. The bottom line is the issuance of 29.7 million common shares and warrants for another 11.8 million. The deal brought $9 million net in the company's coffers. However, the price of each unit under the agreement amounts to $0.322 per unit – a discount from the company's closing price of $0.389 on the day the agreement was signed.

This discrepancy could have been the reason for PGLC's drop yesterday, as the stock moves closer to the price at which the units were issued. The slide is far from dramatic and is in single digits, and if it does not escalate in a further drop, PGLC could go back to business as usual.

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