Hebron Stock Skyrockets 33% on $6.5 Million Private Placement
Hebron's stock soared on news of capital influx to boost its development team and possible acquisitions, in a deal to be closed later this month.
The stock in Hebron Technology Co. Ltd. (Nasdaq: HEBT) closed 33% higher on Monday, at $8.16 per American depositary share, after the company announced it has entered into a $6.5 million private placement agreement with two institutional investors.
Under the agreement, Hebron will sell approximately 1.05 million common shares priced at $6.21 apiece to Jupiter Trading Co. Ltd. (BVI) and Loong Fang Trading Co. Ltd. (BVI), the company said.
The proceeds will boost its working capital and general corporate purposes, including potential strategic acquisitions, Hebron reported.
Anyuan Sun, the chief executive officer of Hebron, said in a statement today, "This represents that investors have great interest to our business expansion from industrial technology service to financial technology service. We believe that the financing will further strengthen our competitiveness in the marketplace."
Based in Wenzhou, Hebron sells valves and pipe fittings for use in the pharmaceutical, biological, food and beverage, and other clean industries.
The private placement is expected to close on or around Dec. 23, Hebron said.