Monumental Energy Corp. (OTC:MNMRF) Stock Gains Momentum: Here is Why
On Tuesday, Monumental Energy Corp. (OTC:MNMRF) was a company that buzzed the newswires following a significant announcement. The company revealed that it had submitted an early warning report with respect to its holdings in New Zealand Energy Corp. It was a strategic investment from the company, which was largely focused on an expansion into sustainable and clean energy spaces. New Zealand Energy completed a non-brokered private placement worth $2,058,778 yesterday.
In connection with the placement, Monumental Energy had managed to pick up as many as 1,000,000 common shares in New Zealand Energy for the price of $0.38 each. It worked out to an investment of $380,000 and gave Monumental Energy Corp. around 12.92% of all the issued and outstanding shares in New Zealand Energy. The money raised from the private placement had been earmarked for the procurement of long-lead items related to the Tariki-5 well. The fresh capital would also be used for working capital purposes.
The interim Chief Executive Officer of Monumental Energy, Michelle DeCecco, spoke about the investment from the company yesterday. She noted that the rationale behind the investment was devised by the growth plan of the company, which depended on strategic alternatives. Those alternatives were focused on clean energy, which would be complementary to the lithium projects of the company.
She went on to note that New Zealand Energy was making plans to imminently explore, drill, and produce, which is why it was a significant new opportunity for Monumental Energy. In its news release yesterday, the company also made it clear that prior to its participation in the private placement, Monumental did not directly or indirectly own any securities in New Zealand Energy. It may be a good idea for investors to keep an eye on Monumental Energy stock over the coming days.
