Cleantech Solutions International Inc. (NASDAQ: CLNT) saw its shares double early in Tuesday’s session after it was announced that the company would be acquired by YSK1860, an investment holding company. YSK1860 actually reported that it acquired all the Cleantech shares from Chairman and CEO Jinhua Wu and his affiliates in late April.
According to the agreement, YSK1860 purchased 416,249 shares of Cleantech from Wu and his affiliates for roughly $970,000, or $2.33 per share.
Keep in mind that at the current price level, the total addressable market cap is roughly $9.3 million.
Although Wu and his affiliates said that they made their decision to sell these shares based on personal reasons, Wu will retain his positions as chairman and chief executive officer of Cleantech going forward.
Dr. Thomas Chan, director of YSK1860, commented:
This investment in Cleantech Solutions demonstrates our trust and confidence in the US stock market and the Company for its long-term growth potential and opportunity to participate in the growing Chinese energy market. We also expect to leverage our investment expertise and connections in the technology, media and telecommunications sectors to support Cleantech Solutions in identifying new business opportunities in the future. We are confident in the current management’s ability to put this year of transition behind us and focus on improving the long-term business outlook.
Excluding Tuesday’s move, the stock is up nearly 400% year to date.
Shares of Cleantech were last seen up over 67% at $5.48, with a 52-week trading range of $0.60 to $10.70.