It’s a very rewarding trading day for investors in Cleantech Solutions International Inc (NASDAQ:CLNT) with shares up over 100%, making the stock Wall Street’s bull of the day. The reason? The clean technology components maker announced that its wholly-owned subsidiary, Vantage Ultimate, has entered into a conditional share swap agreement with Marvel Finance, to acquire Marvel’s 51% interest in the issued share capital of Integrated Media Technology (NASDAQ:IMTE).
The terms of the agreement provide that Marvel shall transfer 51% of the issued share capital of IMT (which is valued at US$13,482,410, based on 1,348,241 ordinary voting shares at a price of US$10.00 per IMT share). In exchange, the Company shall issue a certain number of its shares of common stock, representing 19.5% of the issued and outstanding shares of CLNT, and a 5-year interest-free promissory note with a principal amount of US$11,482,410 to Marvel. The agreement is subject to various conditions, including entry into a definitive agreement satisfactory to both parties and legal and financial due diligence.
Cleantech Solutions COO Parkson Yip commented, “We are excited about our collaboration with Dr. Herbert Ying Chiu Lee, Founder and CEO of IMT, as we explore the development of advanced technologies […] Dr. Lee has extensive experience in technology research and development management, particularly in knowledge management systems and 3D autostereoscopic displays. We believe Dr. Lee will make valuable contributions that will enable CLNT to enhance our technological capabilities and advance our products and services in a more effective and customer-driven manner.”
There can be no assurances that the parties may enter into any agreement to do a transaction, and even if an agreement is entered into, there can be no assurances that such transaction will be consummated.
Cleantech Solutions engages in manufacturing of metal components and assemblies used in clean technology, manufacturing industries, textile dyeing, and finishing machines. It operates through the following segments: Dyeing and Finishing Equipment; Forged Rolled Rings and Related Components, and Petroleum and Chemical Equipment. The Dyeing and Finishing Equipment segment involves in the manufacture and sell of textile dyeing and finishing machines. The Forged Rolled Rings and Related Components segment includes manufacture and sell of precision forged rolled rings, shafts, flanges, and forged components for the energy industry including wind power industries. The Petroleum and Chemical Equipment segment offers producing and selling of coal chemical equipment, formaldehyde plant, and downstream products.