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Shares of graphite exploration company Lomiko Metals jumped from $0.06 to $0.185 between December 24 and 27, but no one seems to know why.
The end of the year is typically a quiet time for resource companies, but this year Vancouver’s Lomiko Metals (TSXV:LMR) is shaping up to be the exception that proves the rule.
While the exploration company, whose focus is on its Quebec-based Quatre Milles East property, ended December 24 at a modest $0.06 per share, three days later, on December 27, it had reached a high of $0.185. That’s a three-fold increase over just three days, two of which saw no trading take place due to the Christmas holiday.
The abrupt rise prompted TSX officials to halt trading, according to Stockhouse, but it “resumed less than an hour later,” after the company came forward to say that it “is not aware of any material changes other than previously announced.”
Such changes include the December 18 closure of a $100,020 private placement, the proceeds of which are to be put toward working capital purposes, as well as the company’s December 4 receipt of a report and prototype graphene supercapacitor from Stony Brook University and New York State’s Center for Advanced Sensor Technology. The prototype was “made using graphene composite material prepared using a proprietary technology developed at Graphene Labs,” Lomiko’s strategic partner.
Further back, at the end of November, Lomiko and Graphene Labs formed Graphene 3D Labs, a company whose focus will be on “the development of high-performance graphene-enhanced materials for 3D Printing,” as per a company press release. Lomiko will be the new company’s exclusive supplier.
All of that certainly sounds like good news, but it doesn’t explain why investors waited so long to start buying shares of the company. However, given that Lomiko achieved a Monday close of $0.15, it seems that the rise is not going to go away immediately. Shareholders, it seems, had best enjoy the ride.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Lomiko Metals is a client of the Investing News Network. This article is not paid-for content.