If you have your ear to the ground you know some healthcare-related stocks have managed to generate significant gains and over the course of the past week. Patient Access Solutions, Inc. (OTCMKTS:PASO) has managed to emerge as a major gainer in a crowded field. PASO is involved in providing technology and management solutions to the financial and healthcare industries.
Over the course of the past week, the Patient Access stock has rallied by as much as 60% and in such a situation, it will be remiss if investors did not take a closer look at the latest events surrounding the company.
Today, the company made a major announcement that could have a further effect on the Patient Access stock and it could be worthwhile for investors to keep abreast of the situation. The company announced this morning that in light of its potential reverse merger with CLX Health and also the expansion of its healthcare management business, Patient Access decided to raise the number of authorized shares.
The company went on to state that the move has been approved by the shareholders and the number of newly authorized shares is going to be 1,750,000,000. This move will apparently give Patient Access the sort of flexibility that will be necessary to close the potential deal with CLX Health.
In this regard, it should be needed that the potential reverse merger with CLX Health is still only at the Letter of Intent stage at this point. In addition to that, the company also pointed out that this move will help the company to issue convertible preferred shares that are possibly going to be priced at $15 each.
More importantly, it is going to give Patient Access a new category of securities that are going to be higher priced and are not going to fall in the penny stock category. It is a significant move from Patient Access and it remains to be seen how the market reacts to this news. Sign up below for breakout alerts and critical news updates.