Cleantech Solutions International Inc (NASDAQ: CLNT) rose in the stratosphere after the company disclosed that its subsidiary Vantage Ultimate Limited entered into a conditional share swap deal to buy 51% interest in Marvel's issued share capital of Integrated Media Technology.
The Hong Kong-based company issued a news release Wednesday saying terms of the agreement provide that Marvel shall transfer 51% of the issued share capital of IMT (which is valued at $13,482,410 U.S., based on 1,348,241 ordinary voting shares at a price of $10.00 U.S. 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 five-year interest-free promissory note with a principal amount of $11,482,410 U.S. 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 COO Parkson Yip said, "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."
Cleantech shares doubled, climbing $4.85, or 108.9%, to $9.30.
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