On Friday, Sabine Oil & Gas Corp (OTCMKTS:SOGC) opened in green and traded in narrow trading range for the entire trading session. The share prices surged more than 7% to close at $0.110 at a volume of 700,526 much below the average volume of 1.84 million. After trading weak for entire week, the stock prices managed a green closing at the end of week.
It is not a strong month for Sabine Oil & Gas as share prices have plunged more than 30% in the month. The problems started escalating when the company’s stock got delisted from the recognized NYSE platform. Previously, the company was known as Forest Oil Corporation and its trading ticker was FST.
NYSE regulators delisted Sabine Oil & Gas share from the NYSE exchange in last December. The reason was failure to achieve the average price of $1 as needed by the NYSE guidelines in the specified period. SOGC stock prices dropped further when the company finished a reverse merger and led a private entity go public. The company didn’t follow normal course and followed back door listing which is not supported by NYSE Regulation.
Sabine Oil & Gas Corp (OTCMKTS:SOGC) submitted 8-K form in first week of March, mentioning that it borrowed capital of $356 million. The payment was borrowed under its ‘revolving credit’ facility. As per the report, the total sum of borrowings now stands at $1.0 billion. The capital generated will be used for ‘general corporate purposes’. The senior note holders sent a default notice to the company stating that they were cheated as there was a change of control after the completion of merger agreement. The deal was completed in December and has resulted in defaults. However, the company defended itself and stated the claims as false as there was no change of leadership.