Asia Broadband Inc. (OTC:AABB) Stock Soars 42%: What’s Going On?
There would be a number of stocks that had come on the radars of investors on Wednesday, and one of those was Asia Broadband Inc. (OTC:AABB) following a significant development. Following the announcement, the stock came into prime focus among investors and ended up with gains of as much as 42%. It is likely that the stock will be on the radar of investors today.
The rally in the Asia Broadband stock came about after the company announced that it had been successful in negotiating a debt settlement with one of its longtime note holders in addition to an originating financier of the company. The company noted in its news release that the management had been working resolutely for a considerable period of time on debt settlement. It further noted that it had reached the final stages of the settlement agreement and was on the verge of planning the final details.
However, that was not all. The company also announced that its Board of Directors had provided its approval for a share buyback initiative. Due to the initiative, the company agreed to deploy its treasury funds to pick up as much as $12 million worth of Asia Broadband shares from the open market. It was revealed that in the past few months, the company had been setting up the logistics for the facilitation of the buyback initiative.
Asia Broadband also announced yesterday that it had made considerable progress with regards to market data collection as part of its preparation process for the legal action against market makers for its shares on the OTC Markets. The legal action had actually been launched by Asia Broadband a number of months ago. The company brought the legal action after many shareholders and members of the public made complaints that the Asia Broadband share price had been suppressed through deceptive trading maneuvers continuously. In this context, it ought to be noted that other companies listed on the OTC Markets have also brought legal action against the alleged manipulation tactics of market makers.
On October 11, Asia Broadband announced that it had decided to extend its due diligence process for further evaluation of the value and development scope of a new gold and silver property acquisition with considerable potential. The company revealed that many weeks previously it had inked a letter of intent regarding the acquisition of the above-mentioned property, located in the historically prolific mining zone at Hostotipaquillo in Jalisco, Mexico.
The high-grade acquisition target spans across an area of as much as 4081 hectares, and it is also located adjacent to the Los Ricos South property owned by GoGold Resources Inc. The addition of the project is expected to be a valuable addition to the company’s gold resources as it continues to work on its strategy to boost its reserves of physical gold. It noted that in the upcoming weeks it would continue to work on the due diligence process in relation to the property acquisition.
