We've said previously that Chinese companies can seem to run for no apparent reason. In fact, we last mentioned Wuxi City, China-based Cleantech Solutions International, Inc. (NASDAQ:CLNT) in an article on the matter on April 25, when shares were surging about 42% on no news.
The run that day didn't hold and the stock retreated from over $5.00 that day back down to $3.27 through trading on Monday. Today, though, shares are screaming ahead on some substance. The manufacturer and distributor of a line of proprietary high and low temperature dyeing and finishing machinery for the textile industry said that the investment holding company YSK1860 has acquired "ownership interest in the company."
YSK1860 bought all the shares previously owned by Cleantech Solutions' Chairman and CEO Jinhua Wu and his affiliates. Cleantech's top executive let his shares go on the cheap, selling all 416,249 shares for $970,000, or $2.33 per share on April 27. Shares closed at $3.84 on that day.
Mr. Wu only said that the decision to sell his stake was personal. He retains his positions as CEO and Chairman.
Dr. Thomas Chan, director of YSK1860, said he expects to leverage his company's investment expertise and connections in the technology, media and telecommunications sectors to support Cleantech Solutions in identifying new business opportunities in the future and to put this year of transition behind Cleantech.
Shares sprinted as high as $6.99 on the news and despite falling well off the high are still holding a gain of 67.3% on the day at $5.47 as the closing bell approaches.
