Tantech Holdings Ltd (NASDAQ:TANH) Electric Vehicles Ambitions

Tantech Holdings Ltd (NASDAQ:TANH)

Tantech Holdings Ltd (NASDAQ:TANH) traded lower days after announcing the appointment of Dr. Yonghua Zhu who is to spearhead the development of the company’s electric vehicle business. Shares of the company fell 3.8% in Wednesday’s trading session, to end the day at $3.04 a share.

Tantech Holdings Ltd (NASDAQ:TANH)

Electric Vehicles Ambitions

Mr. Zhu, as the Chief Scientist Officer, is to oversee the company’s automotive projects with focus on research and development of autonomous driving technology for electric vehicles. He joins the company with vast experience in wireless transmission technology research and development.

He is currently involved in the development of electric vans. Zhu has also teamed up with a Taiwan based company to develop battery management system for electric vehicles to be used for the Hong Kong market.

According to Tantech Holdings Ltd (NASDAQ:TANH) CEO, Zhengyu Wang, the appointment marks an important milestone in the company’s push to build up technical reserves for long-term development. However, it is not expected to have any financial impact on the company in the short term.

“The appointment is in line with the Company’s strategy of developing expertise in products and services used for the electric vehicle sector to build a supply chain covering China’s entire automotive industry,” said Mr. Wang.

Despite coming under pressure in Wednesday’s trading session, Tantech Holdings Ltd (NASDAQ:TANH) has been on an impressive run, ever since it announced its plans for electric vehicles. In October alone, the stock has gained more than 10% in market value. For the full year, the stock is up by more than 50% as it continues to trade in an uptrend.

Public Offering

Separately, Tantech Holdings Ltd (NASDAQ:TANH) has announced the closing of a previously announced securities purchase agreement with certain institutional investors. The company issued 1.9 million shares to the institutional investors at a price of $3.45 a share. The company also issued warrants for the purchase of up to 945,655 common shares at an exercise price of $4.25 a share.

Tantech holdings expect gross proceeds of about $6.5 million from the offering. Net proceeds from the offering are to be used for general and working capital purposes.

Tantech Holdings Ltd (NASDAQ:TANH) will hold its 2017 annual meeting of shareholders on December 18, 2017. Only shareholders on record as of November 1, 2017, will be entitled to vote at the meeting.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Tantech Holdings Ltd (NASDAQ:TANH)

Tantech Holdings Ltd (NASDAQ:TANH) Issues Shares To Institutional Investors

Tantech Holdings Ltd (NASDAQ:TANH)

Chinese clean energy firm Tantech Holdings Ltd (NASDAQ:TANH) has disclosed that it has signed a securities acquisition deal with a number of institutional investors. Shares of Tantech Holdings consequently fell by 32.94%. Under terms of the deal, Tantech Holdings will receive $6.5 million in a direct placement. Each common share will be priced at $3.45 and investors will be issued 1,891,307 shares. Additionally, investors will also receive warrants which will allow them to acquire 945,655 common shares at $4.25 a share.

Tantech Holdings Ltd (NASDAQ:TANH)

Tantech Holdings Ltd (NASDAQ:TANH) will use the proceeds of the offering for general corporate purposes. It is expected that the placement could be completed on September 29, 2017 if customary closing conditions are met.

Electric vehicles

Tantech Holdings Ltd (NASDAQ:TANH)’s securities purchase agreement comes barely over a week since the Chinese clean energy firm announced that its motor vehicle subsidiary had obtained $20 million in sales contracts for electric buses and vans.

“This new sales contract, along with the recent MIIT approval of two of our EV models, laid a solid foundation for us to gain market share in the fast growing Chinese EV segment,” said the Chief Executive Officer and chairman of Tantech Holdings Ltd (NASDAQ:TANH), Zhengyu Wang.

The sales contracts are for the purchase of 10 electric buses and 450 electric. Tantech also revealed that the buyer had made a deposit in order to lock in the price. The buyer will also be required to pay about 30% of the sales price November 2, 2017. The balance is to be paid upon delivery which is expected before the end of this calendar year.

Leading market

Both the electric van and the electric bus have received the approval of the Chinese authorities. The van, suited for tourist uses and airport transportation, has a capacity of 34 passengers while the bus is suited for urban transportation and has a capacity of 46 passengers. Both the electric bus and the electric van possess a driving range of 155 miles or 250 kilometers on a single charge.

The Chinese motor vehicle market is enormous and growing at a fast rate. Last year more than 28 million automobiles were sold and this number is expected to rise to an annual figure of 40 million motor vehicles within three years. This rapid growth has led to massive air pollution that is associated with internal combustion engines and the government has been keen to respond by developing the electric car sector.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $TANH and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Tantech Holdings Ltd (NASDAQ:TANH) Jumps After $20 Million Order

Tantech Holdings Ltd (NASDAQ:TANH)

Tantech Holdings Ltd (NASDAQ:TANH) shares jumped 6.88% after its subsidiary, Suzhou E Motors Buses Co. Ltd, confirmed the signing of a $20 million contract for its electric vans and buses. The contract is for the delivery of 450 all-electric vans and buses.

The massive contract validates the company’s electric car technology at a time when China is emerging as the world largest market for electric cars. Investors appear to be taking note of Tantech Holdings Ltd (NASDAQ:TANH) prospects as it continues to establish its position in the fast-growing electric car market.

Tantech Holdings Ltd (NASDAQ:TANH)
One month TANH stock price chart

China EV Market Opportunity

Tantech Holdings Ltd (NASDAQ:TANH) should continue to rise given its big bet on China electric car industry that is set to grow to 40 million cars a year by mid-2020 up from 28 million as of last year. The $20 million purchase order comes a few months after China’s Ministry of Industry and Information Technology approved the sale of Tantech Holding electric van (ZQK6810EV6) and electric bus (ZQK6810EV8).

The van is specifically designed for airport and tourist operations. The bus, on the other hand, is designed for the urban public transportation industry, coming with a 46 passenger capacity and a driving range of 250km per charge.

“This new sales contract, along with the recent MIIT approval of two of our EV models, laid a solid foundation for us to gain market share in the fast-growing Chinese EV segment,” said CEO Zhengyu Wang.

China presents Tantech Holdings a unique opportunity given the size of country’s auto industry as well as the government crackdown on environmental emission. In a bid to take advantage of the growing demand electric cars, Tantech Holdings Ltd (NASDAQ:TANH) has accelerated its research and development efforts as it looks to stay competitive in the promising EV market.

The Chinese government is currently pushing for environmentally friendly solutions as it seeks to phase out the sale of fossil fuel cars.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.