Express shares are pumping in pre-trading on Wednesday following a 26.75% plunge in the prior trading session.

Express Inc. (EXPR) was on the downside on Wednesday closing the trade with -26.75%. The stock is back pumping again today in the premarket. So far, EXPR has pumped over 100% to $6.11.What’s pushing stock higher?

The reason for this dump and pump is the involvement of short-traders in large numbers. The concept is simple—an investor borrows a stock, sells the stock, and then buys the stock back to return it to the lender. But there’s another major catalyst that has played part in pushing the stock in the past week.

What’s Next?

Express is a US-based dual-gender apparel and accessories brand with a modern and versatile concept. The company operates more than 500 retail and factory outlet stores inside the U.S. and Puerto Rico, along with its online store.

Recently, the fashion brand announced that it has signed a definitive loan agreement with leading lenders in the market. Express has an agreement with Sycamore Partners—the lead lender—along with Bank of America Merrill Lynch and Wells Fargo.

The purpose of this loan is to strengthen the liquidity position of Express by an additional $140 million funding. The total funding is to be paid back with a $90 million term loan by May 2024 and a $50 million to be paid after the receipt of a CARES Act tax refund. Whereas, the tax refund is anticipated to be received in Q2 2021.

The company has an existing asset-based loan facility that is worth $250 million—with the addition of $140 million, now. Whereas, the company has previously drawn $165 million from its existing loan facility.

The CEO of Express, Tim Baxtercommented that they are working to manage their financial liquidity. The additional funding will help Express during this tuff pandemic period—to continue transformational projects under the expressway Forward strategy.

Moreover, this financing will add to Express’ cash reserves until enough of the population gets the vaccine—with in-office work kicking off once again.

Conclusion

This is a good bit of rally for the stock but it’s not for the long-term—as the stock price is backed by short-traders. Before today, EXPR had plunged 78.4% over the last 12-months. Furthermore, the company reported a wider-than-expected fiscal-third-quarter loss—cutting jobs up to 10%. However, the recent financing will help the company to get back on its feet and begin regular business operations.