- Thinly traded nano cap ERBA Diagnostics (NYSEMKT:ERB +29.7%) is up on an 11x surge in volume, albeit on turnover of only 111K shares, in response to its announcement that its German parent and majority stockholder, ERBA Diagnostics Mannheim GmbH, intends to infuse $3.5M into the company in the coming weeks. The cash is the final tranche of the previously reported April 2011 Stock Purchase Agreement between the two firms. After the transfer, the Mannheim organization will own ~83.3% of the company's stock (from 81.6%).
- The new capital will fund the enhancement of manufacturing and additional sales and marketing initiatives.
- The U.S.-based firm intends to restate its financial statements for 2013 and 2014 as well as the quarters ended March 31, 2015 and June 30, 2015.
- Previously: ERBA Diagnostics says previous financials can't be relied upon (Nov. 20)