On Thursday’s trading session, Sabine Oil & Gas Corp (OTCMKTS:SOGC) opened higher but then erased a large part of gains before the closing hours. The stock prices surged 2%to close at $0.102 at a volume of 1.74 million close to the average volume of 1.81 million. It was evident that the stock prices are finding it tough to trade in green zone.
The roller-coaster ride
March didn’t start well for the stock of Sabine Oil & Gas. The share prices have fallen more than 30% since first week of March. The concerns started aggravating when SOGC stock was delisted from the reputed NYSE platform. The company used to trade under the ticker symbol FST as it old name was Forest Oil Corporation.
NYSE delisted Sabine Oil & Gas stock from the NYSE platform in last December, as the company was unable to report average price of $1 as required by the exchange guidelines in the specified period. The stock prices further declined when the company executed a reverse merger and directed a private entity go public via Forest Oil. It didn’t follow the normal procedure and opted for ‘back door listing’ as stated by NYSE Regulation.
The 8-K form
Sabine Oil & Gas submitted 8-K form on March 4, specifying that it borrowed $356 million under ‘revolving credit’ facility. After the last borrowing, the total amount of borrowings has reached to $1.0 billion. The company will use the capital for ‘general corporate purposes’.
The company explained in filing that it received a default notice in respect to senior notes, the holders of which said that they feel cheated due to change of control after the merger deal. The deal that materialized in December has resulted in defaults. Defending its decision, Sabine Oil & Gas Corp (OTCMKTS:SOGC) reported that the claims were not true as there was no change of control.