Lundbeck A/S- ADR (OTCMKTS:HLUYY) retraced the entire loss incurred in the previous trading session and closed at the end of the last trading session with a gain of 1.12%. The volume of the day surged to 225,000 against the daily average of 25,000 only and that reflected pretty well the interest of the investors at this moment. The weekly volume has already reached the highest level seen in the last 5 years and may be the biggest boost for the bulls. The rejection from the long term resistance made the structure weak but if the bulls can keep their strength intact, the stock can be expected to enter a sideways range.
After registering a sharp decline on Wednesday, the stock price of H. Lundbeck A/S- ADR (OTCMKTS:HLUYY) is stuck in a narrow range. In last trading session, the stock gained nearly 1% to close at $28.90. Earlier in September, the company reported that it intends to enhance its share capital by over DKK 2 million, following the exercise of employee warrants. The increase is applicable without any preemption rights for the current shareholders of HLUYY or others.
Lundbeck stated that the subscription of shares will be done in cash at the following rates a share of nominally DKK 5: 61,296 shares at DKK 102, 50,453 shares at DKK 115, 118,697 shares at DKK 121, 250,395 shares at DKK 113 and 65,076 shares at DKK 97. The total proceeds are expected to be over DKK 61 million. The increase corresponds to nearly 0.2777% of H. Lundbeck’s share capital.
The new shares from the process will be ordinary shares and comes in the category of freely transferable negotiable instruments. They shall offer rights to dividend payout and other rights pertaining to the company from the registration time of the capital increase, that it inter alia full dividend rights for the fiscal 2015. Also, the new shares will trade on ‘NASDAQ OMX Copenhagen’ after they get registered with the Danish Business Authority. The company’s existing share capital totals to more than DKK 983 million and after the capital increase will amount to over DKK 985 million.
Citing its plan to considerably improve profitability and create value for shareholders, H. Lundbeck designed a restructuring plan in August to lower its cost base by DKK3B in next two years. The new strategy calls for restructuring of commercial operations and businesses in different markets, especially Europe. Additional details pertaining to its financial outlook will be disclosed when company announces FY2015 results.