Cleantech Solutions International Inc (NASDAQ: CLNT) leapt Friday morning as the company reported a deal to purchase 51% of Inspirit Studio for HK$3 million.
The Hong Kong-basd firm announced that its wholly-owned subsidiary, EC Technology & Innovations Limited ("ECTI"), has entered into the a sale and purchase agreement to buy into Inspirit ECTI will acquire 51% of Inspirit for consideration of HK$3.0 million, which shall be satisfied by the allotment and issuance of 85,473 unregistered shares of the Company at a price of $4.50 per share.
"We are very excited to join the Cleantech Solutions group to further develop and enhance our community courier solutions," said Kurt Tam, CEO of Inspirit Studio.
"We have already made plans to enhance our solutions, cover a broader market scope, and allow more people to join as both users and service providers."
According to iimediaResearch, the number of users participating in the peer-to-peer delivery sharing market in China has grown from 124 million in 2014 to 231 million in 2016, and experts expect it to grow to 353 million by 2018.
Approximately 1.4 billion transactions were recorded in the first quarter of 2017.
Cleantech Solutions, through its affiliated companies, designs, manufactures and distributes a line of proprietary high and low temperature dyeing and finishing machinery to the textile industry.
The Company's latest business initiatives are focused on targeting the technology and global sharing economy markets, by developing online platforms and rental business partnerships that will drive the global development of sharing through economical rental business models.
Shares collapsed 32 cents, or 6.9%, to $4.30 in Friday trading.
