Houston Natural Resources Corp. (OTC: HNRC) confirmed today that it will spin off its non-energy assets to its wholly owned subsidiary Worldwide Diversified Holdings, Inc and then dividend them to its shareholders of record on December 16, 2022. The transaction will provide for a stock dividend of $1.75 of WDHI shares for every share of HNRC held by the shareholder on the record date.

Market Action

On Wednesday, HNRC stock soared 18.60% to $0.51 on the hefty volume of 1.58 million, almost 7X its average volume of 232K shares. The stock moved within a range of $0.4210 – 0.5400 after opening trade at $0.44.

This morning many investors are likely to track the Houston Natural Resources Corporation stock after it managed to emerge as a major gainer yesterday following a key announcement. The stock went up by as much as 18.6% yesterday and also recorded high trading volumes.

The company provided confirmation yesterday that as previously announced it was going to spin off its non-energy assets into a fully owned subsidiary unit named Worldwide Diversified Holdings Inc. In addition to that, the shareholders in Houston Natural Resources Corporation were also going to be provided with dividends following the corporate action.

The dividend that is going to be provided by the company is going to comprise Worldwide Diversified common stock and all shareholders on record as on December 16, 2022, are going to be entitled to it.

On the condition of an effective registration statement, the dividend would be paid out on December 30, 2022. As per further details which had been provided by the company yesterday, shareholders in Houston Natural Resources Corporation are going to be entitled to a dividend worth $1.75 a share in Worldwide Diversified shares.

It was a major new announcement from the company and considering the magnitude of the dividend payout it is perhaps not a surprise that the stock soared yesterday. It is now going to be interesting to see if the Houston Natural Resources Corporation stock continues to add to its gains in the days leading up to December 16, 2022, or not.

Traders Note

HNRC stock is trading above the 20-Day and 50-Day Moving averages of $0.41 and $0.41 respectively. Moreover, the stock is trading above the 200-Day moving average of $0.38.

By Ankit Singhania

Based in India, Ankit is a financial content writer and stock market analyst. He has worked for more than a decade on several financial projects related to stock market news, fundamental research and technical analysis for several websites. He obtained his Masters Degree In finance (MS – finance) from ICFAI.

Leave a Reply

Your email address will not be published. Required fields are marked *