Silo Wellness Inc (OTCMKTS:SILFF) Stock Gains Momentum After A Key Update
On Monday, Silo Wellness Inc (OTCMKTS:SILFF) was in the news after it announced that it had inked a letter of intent with Global Tech Opportunities, a subsidiary unit of Alpha Blue Ocean, for a fresh interest free debt instrument which carried no prepayment penalty.
On Friday, SILFF stock ended flat at $0.0098 with 245 shares, compared to its average volume 43.89K shares. The stock moved within a range of $0.0098 – 0.0098 after opening trade at $0.0111.
Silo Wellness Enters LOI with Largest Creditor, Exchanging $1.06M Debt for Interest-Free Note Convertible at 36% Premium
The company bagged that debt instrument in exchange of debt, which included outstanding debentures and make-whole debt, to the tune of as much as $1.06 million. It was a significant new announcement from the company and one that could have an effect on the price action in its shares this week. In addition to that, it was also announced that the debt in question could also be turned into shares in Silo Wellness at a fixed price pegged at $0.015 a share.
In this regard, it should be noted that the company had also got price protection for its 20 day VWAP of 0.011 and that would expire on March 20, 2023. The agreement signed by the company provides for a 36% premium over the same. In addition to that, this agreement also provides the much needed protection to that company by way of which other creditors would not be able to convert the shares at a discount.