On Wednesday’s trading session Sabine Oil & Gas Corp (OTCMKTS:SOGC) posted gains of more than 20% to close at $0.100 at a massive volume of 2.50 million compared to average volume of 1.76 million. The stock prices managed to close in red after declining on Tuesday.
It was evident that the decline on Tuesday’s trading session was considered as an opportunity to enter into SOGC stock. It started Wednesday’s trading session in red and then made steady gains throughout the session to close in green.
March has been not good for the stock of Sabine Oil & Gas. The stock prices are down almost 30% since it March 2. The problems started when the company stock was delisted from the NYSE. Previously it used to trade as Forest Oil Corporation under the ticker FST.
It was suspended from trading from the NYSE platform in December. The company failed to record an average close of $1 in specified duration following which it was delisted from NYSE. Also, it executed a reverse merger and prompted a private firm go public via Forest Oil, skipping the otherwise normal procedure. Such a process is termed as ‘back door listing’ under NYSE Regulation.
The other news
Sabine Oil & Gas filed 8-K form on March 4, stating that it opted for borrowing of $356 million under ‘revolving credit’ facility, eventually totaling the funds borrowed to $1.0 billion. The capital is to be utilized for ‘general corporate purposes’.
The filing also explains that it received a default notice and acceleration in respect to senior notes. The holders said that there was change of control in December after the merger deal. It has resulted in defaults. However, Sabine Oil & Gas Corp (OTCMKTS:SOGC) said that there was no change of control and states the claims as without merit. After the reports, Moody’s downgraded Sabine Oil & Gas stock to Caa1 rating.