European Metals Holdings shares have fallen over 10%

Frankfort (Feb 1)  In a mammoth update, European Metals Holdings (EMH:LSE) shares fell around 11% on Monday. First of all, the company have confirmed that it was accepted to trade on the globally renowned US based NASDAQ International OTC program and the Company commenced trading under the code ERPNF.

The firm then also announced that on 30th December 2020 the arrangement of a further funding agreement with 6466 Capital Limited. The agreement allows for the drawdown of up to AUD 1 million in tranches as required over 12 months. Any funds drawn down will convert to CDI's in the Company at a price equal to a 15% discount to the 10 - day volume weighted average price of the Company's securities. The issue of shares pursuant to draw downs is not subject to shareholder approval.

Lastly, the firm commented about the impact of the COVID-19 pandemic saying "The potential effects of the Cov-19 pandemic continue to be monitored for impact on the Company's operations.  While the second wave has had more of an impact than the initial wave (March - May 2020) the Company has continued to use remote meeting tools (Zoom and MS Teams) to maintain project momentum, albeit not as efficiently as physical meetings would have allowed.  The Executive Management team closely monitor the ever evolving Cov-19 circumstances and have determined that, so far,  the pandemic has not had a material impact on the Company's operations although timelines may be slightly longer than envisaged.  Further updates will be provided in the event circumstances change.".

As you can see the daily share price has fallen significantly over the last couple of weeks. It hard to say if the uptrend is over just yet but the psychological 50 area could be key. Interestingly, the volume on the sell off has not been bigger than that on the way up. Keep an eye on the volume levels if the share price does recover as it could give us an indication of who is in charge the bulls or the bears.

KitcoNews