Boston, MA 03/17/2014 (wallstreetpr) – Embarr Downs Inc (OTCMKTS:EMBR) is engaged in the business of acquiring, selling and racing of thoroughbreds. Its focus is usually on thoroughbreds that can race in stakes and allowance levels of racings. The company has announced that it has its eyes set on expanding to Arizona and that it has already started the process. In towards that expansion, it is going to acquire more than thoroughbreds.
We take a deep look into this latest development in short while, for now, a look at the shares performance. The shares of the company were up 28.85 percent to $0.335 in the early afternoon Monday. The share gain came on a heavy volume too with far higher volume of share changing hands than in a normal session. The shares, although going up, are still a far cry from the one-year high of $30.
Share performance recap
Shares of Embarr Downs Inc (OTCMKTS:EMBR) have been troubled in the past one year. The shares traded down $0.02 per share in the past 52-weeks and have been traded up $30 in the past 52-weeks. With the announced expansion plans and robust business predicted for the company, it is hoped that the gains it is going to make will help in lifting up the stock price.
Arizona operations
Embarr Downs Inc (OTCMKTS:EMBR) announced in a press release issued Monday that it has filed for license application to the Arizona Department of Racing so that it can expand its business in the state.
According to the company CEO Joseph Wade, the company is impressed that with less than three months in operations, it has attained not just milestones but a foundation to expand – into Arizona in the immediate case.
The company stated that it was able to increase the number of its thoroughbreds to 3 and started in 5 races. But now it has its view set on bigger expansion. It wants to acquire roughly 5 to 6 thoroughbreds and augment that acquisition with a thoroughbred that can compete in stakes races.
Is the company planning shares dilution?
In order to make the acquisitions, the company needs funds, but amazingly, it is not going to do the thing that investors abhor – issuing common stock. Instead, Embarr Downs Inc (OTCMKTS:EMBR) CEO Mr. Wade stated that they have established a line of credit that will enable them bypass share dilution in its planned acquisitions.
