WPCS +13.6% AH after announcing operational updates, disclosing conversions

|About: WPCS International Incorporated (WPCS)|By:, SA News Editor

WPCS International (WPCS) shares add another 13.6% AH to the regular trading day's 15.7% gain after the company announces several operational updates.

In the last four months, WPCS's 2 profitable domestic subsidiaries have executed new contract awards of $6.8M (+27% Y/Y). Notable customers include Johnson Controls, Siemens, Honeywell, SimplexGrinell, S.F. Airport, Sutter General Hospital, and California Pacific Medical Center.

WPCS has initiated a search for a President of recently-acquired BTX Trader, secured office space in NYC, and is "pursuing several key BTX-related strategic initiatives that it hopes to be able to report upon early in 2014." Since announcing a public beta, the platform has seen a 600% increase in beta enrollments.

The company will relocate its corporate office to a smaller, lower cost space after its lease expires at the end of Jan. WPCS also expects to save ~$200K in future compensation expense to to a separation agreement with a former exec.

Finally, WPCS has entered a non-binding agreement with a broker to find a buyer for the 60% interest in its China JV.

UPDATE: The company files a disclosure with the SEC that between Dec. 19 and Dec. 30 it received conversion notices to issue 6.4M shares in exchange for $1.27M (representing a conversion price of ~$0.20/share). Shares outstanding as of Dec. 30 totaled 12.1M, with $1.3M in principal of convertibles remaining. In aggregate the conversions represent an 89.1% increase in shares outstanding. (8-K) The conversions have been a sore spot for investors since WPCS's CEO did not disclose the total sum on a conference call earlier this month.