Zion Oil&Gas, Inc. (NASDAQ:ZN) Spikes Up After the Shareholder Dilution

[[tagnumber 0]]The share price of Zion Oil&Gas, Inc. (NASDAQ:ZN) spiked up on record trading volume yesterday a few days after the company announced the completion of a rights offering. ZN has not yet achieved any progress on its single exploration project, yet the stock could get more attractive now with the improved liquidity.[[tagnumber 1]] [[tagnumber 0]][[tagnumber 3]][[tagnumber 1]] [[tagnumber 0]]Yesterday, ZN closed the market at $1.70 for a share which makes a total gain of 20.57% from the previous close. The trading volume of over 420,000 traded shares was enormous for the illiquid stock and definitely the highest for the past 52–weeks. Technical indicators point straight up and crossed the critical levels in just one session, however, ZN could drop down massively after the traders have covered their short positions.[[tagnumber 1]] [[tagnumber 0]]The company‘s latest quarter report shows it still has no sales and has not yet started any drilling activities under its active exploration license in Israel which expires in December next year. There is still no news on whether ZN has signed an actual drilling contract which it was required to do under the terms of its license by October 1, 2015.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 10]][[tagnumber 1]] [[tagnumber 0]]Drilling was also supposed to begin by December 1, 2015 but as it seems that deadline may also not get met. ZN latest 8–K filing from this Tuesday shows at least the company has strengthened its cash position and at the same time improved the liquidity of its stock. A previously announced rights offering was completed at the end of September.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 1]] [[tagnumber 0]]As a results, around 550,000 new shares of common stock will be issued to shareholders who have exercised their rights to purchase shares of ZN under the offering. Gross proceeds are around $960,000 and the exercise price per share has been given as $1.75, while a previous filing shows some more details. For every 5 shares owned in June a shareholder was granted one right at a price of $7. For each right the shareholder will now be issued 4 shares of common stock.[[tagnumber 1]] [[tagnumber 18]] [[tagnumber 1]]