There were a number of high fliers on Thursday, led by a Chinese company after the company sold stocks in a stock offering at a price 50% higher than the last closing price.
China Auto Logistic (CALI) jumped over 78% after selling stock at a 50% premium over the last market price. The company announced that it successfully closed the sale on July 1 of three million unregistered common shares to accredited individual investors at an above market price of $1.75 per share, raising a total of $5.25 million for general corporate purposes. The stock closed at $1.16 on Wednesday. Mr. Tong Shiping, CEO and Chairman of the Company, noted that each of the investors, in agreeing to a long term-purchase of CALI shares above their 20-day moving average price, "clearly appreciate the strength and growth potential of our Company, which has been masked by the unprecedented current predicament of Chinese stocks in the U.S."
The CEO continued, "The full year sales advance in 2010 above 32%, as I had said repeatedly, was unsustainable. Nevertheless, I believe we will continue to see very healthy, world leading double digit sales in 2011 and beyond, following year-over-year growth through the first five months this year of about 4.2%, nearly 7% growth in passenger car sales, and continuing double digit growth in luxury sales.”
APAC Customer Services (APAC) jumped over 55% after it announced that it would be acquired by a private equity firm for $8.55 per share. The company and One Equity Partners, the private investment arm of JPMorgan Chase, announced that they have entered into a definitive merger agreement under which an affiliate of One Equity will acquire 100% of APAC, through an all-cash transaction with an aggregate equity value of approximately $470 million. APAC’s Board of Directors has unanimously approved the transaction. Under the terms of the agreement, One Equity Partners will pay APAC stockholders $8.55 per share in cash, which represents a premium of approximately 57% over APAC’s closing share price on July 6, 2011, the last trading day prior to today’s announcement. The acquisition is anticipated to be funded through committed equity and credit facilities and is not subject to any financing contingencies. The transaction is expected to close in the fourth quarter of 2011, subject to the satisfaction of customary closing conditions, including Hart-Scott-Rodino clearance and approval of APAC’s shareholders.
Ocz Technology Group (OCZ) rose 16% after reporting strong Q1 results. The company said that revenue in 1Q12 was a record $73.8 million, and increased 115% compared with revenue of $34.3 million reported in 1Q11. Gross margin increased to 20.0% versus 12.1% in 1Q11. Non-GAAP net income for 1Q12 was $0.5 million, or $0.01 per share as compared with a non-GAAP net loss for 1Q11 of $2.7 million, or $0.11 loss per share. OCZ said that it expects revenue for FY12, to be in the range of $310−$345 million, an increase of approximately 65%−80% compared with $190 million reported in fiscal year 2011.
FSI International (FSII) rose 12% after announcing that it received an Orion System order. The company said that it received a repeat Orion single wafer cleaning system order from a leading foundry producer. The order is expected to ship in the fourth quarter of fiscal 2011. The customer will use the system for back-end-of-line (BEOL) cleaning processes. Foundry and logic manufacturers are finding low-k materials and metal film stacks used for advanced devices are much more sensitive to wet cleaning than previous generations of BEOL processes. The closed chamber technology of the Orion system has demonstrated highly efficient removal of etch and ash by-products without causing galvanic corrosion or changes in metal and dielectric film properties. Evergreen Energy (EEE) closed up 9% after announcing that the preliminary resource estimate for Southern Coal’s Penrhyn Deposit was substantially better than expected. The company announced Southern Coal Holdings, a company jointly owned by Evergreen Energy and WPG Resources, released its preliminary estimate of resources in the Penrhyn Deposit, located in Penrhyn, Australia. Following a robust series of drilling and exploration efforts, the report, which is Joint Ore Reserves Committee compliant, established a far better than expected resource size of an estimated 350 million tonnes of coal deposits at Penrhyn, 92% of which are estimated to be in the “measured and indicated” mineral category. The company added that the initial estimates of the coal deposits were 200 million tonnes.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.