The share price of Solar Power, Inc. (OTC:SOPW, SOPW message board) made a large gap up and traded unseen since the beginning of last year volume in the last trading session. The big news from the company was additionally distributed by the trading alerts of a stock promoter.

SOPW was a true gainer already at market open, but following the initial gap up the share price was on a decline during the day. The stock closed then at $0.48 for a share with a still substantial increase of 29.73% from the previous close and the total volume traded amounted 2.65 million shares.

Such enormous interest has not been observed recently, but the largest volume for the past year could yet not be topped, although it seems like along with the press release of Solar Power from yesterday a stock promoter noticed the momentum that the shares of SOPW will experience and included the stock in his trading alerts. That additional demand could have exhausted the upside potential to some extent. The news that hit the market early in the morning and that got confirmed later in an 8-k filing was that Solar Power will issue shares of common and preferred stock and will sell certain manufacturing equipment to a Cayman Islands based company for a total purchase price of $32.93 million.

The deal will be in two independent stages, whereby firstly 42.83 million shares will be issued and the equipment will be sold for proceeds of $10.7 million and secondly the purchaser will pay $22.22 million for 20 million shares of preferred stock.

For now it looks like SOPW has only the first payment secured, as the closing of the second transaction is subject to the purchaser finding the funds. Upon closing both transactions, the current Solar Power shareholders will retain only 30% of the issued and outstanding shares. Additionally, the shares of the current CEO and of certain other members of the management will be subject to a Lock-Up Agreement for a period of one year and respectively three months.

source:  hotstocked

Advertisements