Skycorp Solar to Buy Nanjing Cesun 56% Stake for $20.2M, Shares Surge 104%
Skycorp Solar will acquire the remaining 56% of renewable energy firm Nanjing Cesun for $20.2 million through issuance of 7.98 million shares at $2.529 apiece, implying a $36.1 million enterprise valuation. The related-party deal and concurrent $3 million private placement drove shares up over 100% in premarket trading.
1. Acquisition Terms
Skycorp Solar agreed to acquire the remaining 56% equity in Nanjing Cesun Power Co. for $20.2 million by issuing 7.98 million new shares priced at $2.529 each, implying a full enterprise valuation of about $36.1 million.
2. Share Price Response
The announcement triggered a premarket rally, with Skycorp Solar shares jumping over 125% at one point before settling at a gain above 104%.
3. Related-Party Considerations
The selling parties include CEO Huang Weiqi and EZPower, making this a related-party transaction that will require approval and may raise governance scrutiny.
4. Private Placement Details
Concurrently, Skycorp Solar is raising $3 million through a private placement aimed at general corporate purposes, providing additional liquidity for its renewable energy expansion.