Zoom Technologies (ZOOM) shares rocket up 149% AH after the company announces it has signed a Letter of Intent to enact a reverse merger in which it will acquire all the outstanding shares of Chinese mobile advertising services provider Beijing Baifen Tonglian Information & Technology in exchange for an issuance of 12M Zoom shares, or ~80% of the company's ownership post-transaction. At today's close the shares would have been worth $28.8M; they are now worth $72.2M.
Baifen's network includes over 400 partners, including Fortune 500 businesses. Zoom CEO Lei Gui said Baifen "has enviable margins and a scalable business."
The letter includes an exclusivity period beginning in Jan. and ending in May - if either party withdraws a $3M break-up fee may be owed.
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