James Marion

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.
Nova Lifestyle Inc. (NASDAQ:NVFY)

Nova Lifestyle Inc. (NASDAQ:NVFY) 900% Net Income Increase

Nova Lifestyle Inc. (NASDAQ:NVFY)

Nova Lifestyle Inc. (NASDAQ:NVFY) shares gained 21.5% after the innovative designer and distributor of modern lifestyle consumer products reported record Q3 2017 financial results. According to the Chief Executive Officer, Tawny Lam, the stellar financial results reflect the successful transformation of the company.

Nova Lifestyle Inc. (NASDAQ:NVFY)

Returning Shareholder Value

Investors pushed the stock higher after the Chief Executive Officer reiterated they expect growth to continue into the fourth quarter. In addition, the executive says they plan to initiate stock buy-backs or start paying cash dividends to reward long-term shareholders.

The stellar financial results helped strengthen investors’ confidence in Nova Lifestyle Inc. (NASDAQ:NVFY)’s long-term prospects. The stock is currently trading in an uptrend after erasing all the losses accrued since the start of the year. The stock faces immediate resistance at $2.40, above which it could make a push for a 52-week high of $3.10 a share.

Q3 Financial Results

Renewed investor interest in Nova Lifestyle Inc. (NASDAQ:NVFY) follows the announcement of a 900% increase in net income that came in at $2.96 million or $0.11 a share. Net sales for the three months ended September 30, 2017, increased 8.8% to $33.2 million, compared to $30.5 million reported for the corresponding period last year.

Gross profit margin in the company improved to 18% on average, representing an increase of about 3%. Nova Lifestyle Inc. (NASDAQ:NVFY) attributes the stellar performance to a 200% increase in new product offerings combined with innovative product designs.

“Nova Lifestyle’s third quarter financial performance reflects the results of our successful transformation from an ‘asset heavy’ furniture-manufacturing business to a ‘light asset,’ high margin, consumer Product Company focused on innovative product designs and customer-centric marketing,” said Mr. Lam.

Nova Lifestyle’s Robust Growth

Strong customer demand across all product lines also continues to support Nova Lifestyle Inc. (NASDAQ:NVFY) growth prospects in the business. The company is projecting significant growth in the years to come, thanks to a record number of new product SKUs. This year, the company has increased its selection of bedroom offerings by 50%.

Rapid expansion is also expected to result in a diversified global customer base which should lead to more sales in the years to come.

“We see tremendous growth opportunities to further cement Diamond Sofa’s position as a leading product destination for retailers, home stagers, and designers,” said Mr., Lam.

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.

TheStreet, Inc. (NASDAQ:TST)

Cramer Signs Again with TheStreet, Inc. (NASDAQ:TST)

TheStreet, Inc. (NASDAQ:TST)

Shares of TheStreet, Inc. (NASDAQ:TST) gained over 33% after it announced that it has entered into a new four-year agreement with Jim Cramer, the company’s founder, financial markets commentator on CNBC. He will also continue to host events, author articles, and provide video content for the company’s subscription products and distribution channels.

TheStreet, Inc. (NASDAQ:TST)

 

Other news released today included a Q3 2017 earnings release that saw net income at $0.2 million, or $0.01 per share. Last year for the same period the company reported a net loss of (-$1.2) million, or (-$0.03) per share. Earnings met analyst expectations.

 

TheStreet, Inc. (NASDAQ:TST) is a global financial news and information provider to investors and institutions. The company’s flagship brand, TheStreet (www.thestreet.com), is in its third decade of producing business news and market analysis for individual investors. The Street’s portfolio of institutional brands includes The Deal (www.thedeal.com), which provides actionable, intraday coverage of mergers, acquisitions and all other changes in corporate control; BoardEx (www.boardex.com), a relationship mapping service of corporate directors and officers; and RateWatch (www.rate-watch.com), which supplies rate and fee data from banks and credit unions across the U.S.

TheStreet Q3 Earnings

 

For the third quarter of 2017, the Company reported revenue of $15.3 million, and an Adjusted EBITDA(1) of $2.1 million. Q3 2017 net income reflects declines in cost of services, sales, and marketing and general and administrative expenses, partially offset by higher depreciation and amortization expense from infrastructure buildout during 2016 and year to date 2017.

 

David Callaway, President and CEO of TheStreet, Inc. (NASDAQ:TST) stated in the press release “This is the second consecutive quarter that we have had net income,”. “Our turnaround plan has taken hold. With the confidence of our newest investor, 180 Capital, and finalized contract negotiations with Jim Cramer, we are set for continued growth on the top and bottom line of the business.”

 

TheStreet, Inc. (NASDAQ:TST) stock has lagged behind the market for the year – returning only 2.5%. The large bunce in share price was due to, observers feel, the signing of Jim Cramer who has become a recognizable personality with broad reach among retail investors and market observers.

 

The lone analyst that covers TheStreet, Inc. (NASDAQ:TST) rates TST shares as a “Strong Buy” with a one-year target price of $2.05.

 

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 $TST and receive breaking news on other hot stocks by signing up for our free newsletter!

 

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.

 

FuelCell Energy Inc. (NASDAQ:FCEL)

FuelCell Energy Inc. (NASDAQ:FCEL) Short Interest Drops

FuelCell Energy Inc. (NASDAQ:FCEL)

FuelCell Energy Inc. (NASDAQ:FCEL) shares gained 4.52% in Friday’s trading session as short interest on the stock continued to drop. Over the past two weeks, short interest has dropped by 3.3% and currently accounts for 7.2% of the company’s total float.

FuelCell Energy Inc. (NASDAQ:FCEL)

Fuel Cell Technology

FuelCell Energy Inc. (NASDAQ:FCEL) has been on an impressive run – since June it has gained more than 100% in market value. However, for the full year, the stock is up by 15%. The stock is currently trading in an uptrend.

Growth in popularity of the company’s fuel cell technology appears to have strengthened investors’ confidence in the company’s long-term prospects. The technology utilizes a chemical reaction to convert a fuel source to electricity. Given its benefits and the fact that it is eco-friendly, the U.S Defense Department has started to use the technology.

General Motors has started working with the U.S army to develop fuel cell electric vehicles as the race to reduce dependence on conventional fuel gathers momentum. The rise in popularity of this technology has resulted in fuel cell producers like FuelCell attracting big contracts from customers across various sectors.

FuelCell Energy Inc. (NASDAQ:FCEL) has since entered into a power purchase agreement with the Connecticut Municipal Electric Energy Cooperative. The agreement is for the supply of power to the U.S Navy Submarine Base in Groton. The 7.4MW clean power is to be generated from the company’s two SureSource 400TM power plants.

The power project will ensure the U.S Navy has long-term cost-effective power for powering critical infrastructure. The fuel cell plants are also to be configured for grid-independent operations.

“Our fuel cell solutions are compelling as their predictable and clean power generation profile meets resiliency and environmental goals simultaneously. Additionally, this project is structured so that the U.S. Navy enjoys the many benefits of clean on-site power generation while continuing to work with its local and trusted utility under a pay-as-power-is-produced model,” said CEO Chip Bottone.

SureSource Certification

Separately, FuelCell Energy Inc. (NASDAQ:FCEL)’s SureSource 1500 fuel cell power plant operating on Anaerobic Digester Gas has received an important certification. The California Air Resources Board’s certification acknowledges the clean air profile of the solution, in facilitating air permitting process which reduces costs.

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 $FCEL and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO)

Ford News Boosts Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) Stock

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO)

EKSO stock rocketed in Friday’s trading session after an announcement that The Ford Motor Company (NYSE:F) is testing exoskeletons developed by Richmond, CA-based Ekso Bionics Holdings, Inc. (NASDAQ:EKSO).

The four EksoVests were paid for by the United Auto Workers union, which represents hourly workers at Ford, and the automaker plans tests for the exoskeleton in other regions including Europe and South America. The cost of the exoskeletons, which were developed as part of a partnership between Ford and Ekso, was undisclosed. Two workers at each of the company’s Wayne and Flat Rock factories have been testing the exoskeletons since May. The lightweight vest supports workers while they perform overhead tasks, providing lift assistance of up to 15 lbs. per arm through a mechanical actuator that uses torque to take the stress off a worker’s shoulders.

About Ekso Bionics Holdings, Inc. (NASDAQ:EKSO)

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) was founded in 2005 and began by developing exoskeletons for the military and medical fields. In 2013, the company branched out into the manufacturing and construction sectors in 2013. Ekso Bionics is the only exoskeleton company to offer technologies that range from helping those with paralysis to stand up and walk, to enhancing human capabilities on job sites across the globe, to providing research for the advancement of R&D projects intended to benefit U.S. defense abilities.

EKSO Stock

Last Wednesday Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) reported a Q3 2017 loss of (-$6.3) million, or (-$0.18) per share, on revenues of $1.6 million. According to Zack’s Investment Research, the consensus estimate for Q3 was a loss of (-$0.13). Despite missing the consensus estimate by over 35%, the market reacted with a shrug and EKSO stock was barely changed for the day.

However, the market reacted strongly to the press release announcing the relationship with the Ford Motor Company. EKSO shares closed on Thursday at $1.05, the gapped up to open at $1.30 before hitting their inter-day high of $1.58 and eventually settling at $1.53.

For the week, EKSO stock is up over 35%, but shares are down year-to-date by over 60%. Friday’s price action sent shares higher just one day after the stock threatened to make a new 52-week low below $0.99. While the consensus, one-year price target for Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) is 43, that figure could change as news is absorbed about potential sales revenues through the global automobile manufacturer.

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 $EKSO and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

TICC Capital Corp. (NASDAQ:TICC)

Is TICC Capital Corp. (NASDAQ:TICC) Quarterly Distribution At Risk?

TICC Capital Corp. (NASDAQ:TICC)

Shares of TICC Capital Corp. (NASDAQ:TICC) fell 10.1% after the management investment company reported disappointing financial results that fell short of Wall Street expectations. The point of concern is that the company’s dividend offerings could be at risk as cash holdings continue to drop.

TICC Capital Corp. (NASDAQ:TICC)

Q3 Financial Results

For the three months ended September 30, 2017 the company reported a net investment income of $6.8 million or $0.13 a share. However, TICC Capital Corp. (NASDAQ:TICC) recorded net realized losses of (-$3.3) million and a net unrealized appreciation of $2.6 million. In total, net assets from operations increased by $6 million or about $0.12 a share.

Investors reacted to the Q3 financial results by pushing the stock lower following a sell-off that began in March. The stock has shed more than 30% since the start of the year as investors’ confidence in the company’s long-term prospects continues to drop.

TICC Capital Corp. (NASDAQ:TICC) makes a good chunk of its earnings from collateralized loan obligations (CLOs). A decline in yields on loans inside CLO’s in the recent past has considerably weighed into the company’s net income. The decline has resulted in a decline in the amount of money payable to investors.

The diversified holding company is notably known for its $0.20 a share quarterly dividend. A decline in cash payments received from CLO is already making some investors reassess their positions in the company.

Management Remarks

TICC Capital Corp. (NASDAQ:TICC) says declining cash distributions were a result of one-time expenses. The company does not expect the charges to repeat in the future. According to Chief Executive Officer Jonathan Cohen, focus will be on syndicated corporate loans. There are also plans to focus on narrowly syndicated loans through purchases in primary and pre-marketing syndications.

“Moreover, our corporate investment activity continues to focus on the rotation of the portfolio into higher yielding loans. We also continued the active rotation of our CLO portfolio with opportunistic purchases and sales,” said Mr. Cohen.

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 $TICC and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

Microvision, Inc. (NASDAQ:MVIS)’s Wider Than Expected Q3 Net Loss Spooks Investors

Microvision, Inc. (NASDAQ:MVIS)

Microvision, Inc. (NASDAQ:MVIS) shares fell 24.9% after the leader in ultra-miniature displays reported third quarter financial results that fell short of Wall Street expectations. The net loss of (-$5.2) million or (-$0.07) a share compared to a net loss of (-$4.1) million reported last year, did not go well with investors.

Microvision, Inc. (NASDAQ:MVIS)

Q3 Financial Results Reaction

The disappointing financial results added fuel to a sell-off wave that has plagued the stock in recent trading sessions. Over the past two months, the stock has shed more than 40% of market value. However, it is still up for the year.

Revenue growth in the third quarter was a soft spot in the company’s financial report. The company posted revenues of $6.1 million compared to $4 million reported a year ago. However, revenue for the first nine months of the year took a hit, dropping to $8.3 million compared to $11.9 reported last year.

Microvision, Inc. (NASDAQ:MVIS) expects revenue to continue growing heading into the year-end. In March, the company received a $6.7 million order from China-based smartphone manufacturer Ragentek. The order is for the supply of PSE-0403 display engine, which the company plans to fulfill in the coming months.

PSE-0403 is Microvision, Inc. (NASDAQ:MVIS) lead product in the engine line business. The Company also has two other scanning engines – one for 3D LiDAR sensor and another for interactive display. In addition, the company is currently working on a major supply contract for a laser beam scanning system for a leading technology company.

Stock Offering

During the quarter, the company sold 1.5 million shares to a private investor at a price of $2.10 per share. Gross proceeds from the offering totaled $3.15 million. MicroVision plans to use proceeds from the offering for general corporate purposes. The company also issued 5.5 million shares in an underwritten public offering, generating gross proceeds of $11.5 million.

Board Appointment

Separately, Microvision, Inc. (NASDAQ:MVIS) has confirmed the appointment of Bernee D.L Strom to its board of directors. He joins the company with over 25 years’ experience of executive management, marked by roles on various boards.

“Bernee Strom is a tremendous addition to the MicroVision board of directors with her background as a founder, leader, and board member of many public and private high technology companies,” said Brian Turner, Chairman and Independent Director at MicroVision.

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 $MVIS and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

The9 Limited (ADR) (NASDAQ:NCTY) Volumes Explode

The9 Limited (ADR) (NASDAQ:NCTY)

The9 Limited (ADR) (NASDAQ:NCTY) shares have traded over 1.1 million times today and is down 2.8%. NCTY shares have a posted daily average volume of just 28,500. It has been a long, persistent fall for a company that was projected by analysts, in 2007, to reach $42 per share.

The9 Limited (ADR) (NASDAQ:NCTY)

The9 Limited (ADR) (NASDAQ:NCTY) is a Chinese online game developer and operator. The9 develops and/or operates, its proprietary mobile games and web games, including the CrossFire brand new shooting mobile game, Audition mobile, Knight Forever, Q Jiang San Guo and Wildlands God of War.

Deal Terms

Today the company announced that its subsidiary has signed an exclusive publishing agreement with Alibaba Games’ subsidiary. The agreement grants Alibaba Games’ subsidiary an exclusive right to publish its proprietary CrossFire brand new shooting mobile game in China. The9 Limited’s subsidiary developed the CrossFire brand new shooting mobile game using the CrossFire intellectual property licensed from Smilegate Entertainment, Inc.

The9 Limited’s also signed a settlement agreement with Smilegate Entertainment, Inc. to terminate the license of CrossFire 2. Under the settlement agreement, The9 Limited will receive cash refund of the previous upfront license fee payment from Smilegate Entertainment, Inc.

NCTY Stock Performance

By the end of 2009, NCTY stock was trading under $10. By 2016, the stock was having trouble staying above $2, and for all of 2017 the psychologically important $1 level has been a challenge.

Shares of The9 Limited (ADR) (NASDAQ:NCTY) are down 45% for the year and down 6% for the past month. Importantly, the latest financial reports put the games developer’s cash-per-share value at just $0.10.

In the gaming market, it is not unusual to burn through a large amount of cash at a fast rate. Talented developers are known to be very expensive and that does not include the expense of testing and debugging their work product.

In 2016, NCTY shareholders lost (-$4.27) per share on sales of $.8.5 million.

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 $NCTY and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

Global Eagle Entertainment Inc. (NASDAQ:ENT) Moody’s Ratings Withdrawal

Global Eagle Entertainment Inc. (NASDAQ:ENT)

Shares of Global Eagle Entertainment Inc. (NASDAQ:ENT) fell 11.11%, after rating agency Moody’s withdrew the company’s ratings. The firm in a press release cited a lack of insufficient or otherwise inadequate information, needed to support the maintenance of ratings.

Global Eagle Entertainment Inc. (NASDAQ:ENT)

ENT Investors Reaction

Investors reacted to the news by pushing the stock to a new all-time low. Global Eagle Entertainment Inc. (NASDAQ:ENT) stock continues to trade in a strong downtrend and is down over 60%.

Declining investor confidence on the stock follows disappointing fourth quarter and full year financial results for FY2016. For the fourth quarter, Global Eagle Entertainment generated a net loss of (-$91.7) million. Net loss for the full year came in at (-$112.9) million.

EBITDA was up 24.9% in the fourth quarter to come in at $19.4 million. Global Eagle Entertainment attributes the increase to contributions from the EMC acquisition and growth in the Aviation connectivity business. However, it was partially offset by losses in the content services business.

Revenue Growth

Year-over-year revenue growth of 45.5% helped offset investor concerns about the wider than expected net loss. Global Eagle Entertainment Inc. (NASDAQ:ENT) posted revenue of $165 million for the fourth quarter. Full-year revenue was up 26.2% to come in at $538 million. Connectivity revenue was up 175% to come in at $88.4 million in the fourth quarter. Content revenue, on the other hand, dropped 5.8% to come in at $76.4 million.

Growth in revenue was mostly driven by the acquisition of Emerging Market Communications and continued growth of the Aviation Connectivity business. According to Chief Executive Officer, Jeff Leddy, 2017 has been a transition year for the company.

“2017 has been a year of transition for Global Eagle Entertainment Inc. (NASDAQ:ENT), and we are building a solid foundation to position our company for future growth. Importantly, we have strengthened key areas in our finance and other shared service functions and continue to integrate past acquisitions across our business lines,” said Mr. Leddy.

Global Eagle Entertainment Inc. (NASDAQ:ENT) is currently focused on strengthening its pool of talent which it expects to accelerate growth in the Content and Connectivity businesses. The company has also started to implement new software tools with a view to enhancing operations and improving the timeliness of financial reporting.

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 $ENT and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

iPass Inc. (NASDAQ:IPAS)

iPass Inc. (NASDAQ:IPAS) Inks Deals

iPass Inc. (NASDAQ:IPAS) Inks Deals

iPass Inc. (NASDAQ:IPAS) shares gained 2.5% after the leading provider of global mobile connectivity announced a collaboration agreement with Tech Data Corp (NASDAQ:TECD). Pursuant to the agreement, Tech Data is to use iPass SmartConnect platform to distribute its intelligent connection management and Wi-Fi service offerings.

iPass Inc. (NASDAQ:IPAS) stock is currently trading in a downtrend after coming under immense selling pressure. The stock is down by more than 50% for the year as it languishes near all-time lows.

Tech Data SmartConnect Platform Integration

The iPass SmartConnect platform is designed to ensure secure connections while on Wi-Fi, thus ensuring privacy and security with full protection. It also guarantees improved productivity given that it keeps mobile employees always on, with unlimited access to Wi-Fi.

“We’re proud to provide our channel partners with comprehensive solutions to better serve their SMB customers. The iPass SmartConnect platform creates new revenue streams and enhances customer engagement,” said Linda Rendleman, vice president of Product Marketing.

The agreement presents iPass a unique opportunity to expand its reach across the U.S and Canada. Tech Data has already reiterated plans to leverage its strategic position to help reach more customers in the channel space. The firm is to offer SmartConnect platform as a stand-alone offering or bundled into a complete solution. The firm also plans to facilitate partnerships between iPass and original equipment manufacturers.

Ooredoo Collaboration

In addition to the Tech Data partnership, iPass Inc. (NASDAQ:IPAS) has inked a strategic partnership with Ooredoo Global Services. The wholesale arm of the world’s fastest growing telecommunication company Ooredoo is to use iPass SmartConnect SDK to provide global Wi-Fi Services to its customers in the Middle East, North Africa and South East Asia.

The integration will allow the service provider to provide customers with simple, yet secure and unlimited Wi-Fi access to millions of hotspots worldwide.

“The iPass SmartConnect SDK makes it incredibly easy for network operators to integrate global Wi-Fi into their existing services. With more customers using roaming services, global Wi-Fi connectivity can prove to be a key differentiator for mobile network operators,” said iPass Vice president Mato Petrusic

Separately, iPass Inc. (NASDAQ:IPAS) is to announce its financial results for the three months ended September 30, 2017, on November 1, 2017, following the close of regular market trading The Company will also host a live conference to discuss the financial results, business activities and outlook.

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 $IPAS and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

AirMedia Group Inc. (ADR)(NASDAQ:AMCN)

AirMedia Group Inc. (ADR) (NASDAQ:AMCN) Inches Closer To Privatization

AirMedia Group Inc. (ADR) (NASDAQ:AMCN)

AirMedia Group Inc. (ADR)(NASDAQ:AMCN) fell 2.67% after announcing it has entered into amendment No. 5 as part of its Agreement and Plan of Merger dated September 29, 2015. Pursuant to the merger agreement, AirMedia Holdings and AirMedia Merger Co. have agreed to provide a cash escrow or letter of credit for the payment of the parent termination fee.

Merger Agreement

AirMedia Group Inc. (ADR) (NASDAQ:AMCN) stock is currently trading in a downtrend after struggling to rise above $2.80. The stock is down by more than 10% for the year

The leading operator of out-of-home advertising platforms in China entered into a definitive agreement and Plan of Merger with AirMedia Holdings (Parent) and AirMedia Merger Company Limited (Merger Sub) in 2015. Pursuant to the agreement, the Parent agreed to acquire AirMedia Group Inc. (ADR) (NASDAQ:AMCN) for $3 per ordinary share or $6 per American Depository Share.

The bid at the time represented a 70% premium. The Buyer Group is led by Mr. Herman Guo Man, Ms. Dan Shao, and Mr. Qing Xu owning AirMedia. The Buyer Group has since agreed to provide real properties owned by one member as an alternative collateral and security to the Merger agreement.

“The Company cautions its shareholders and others considering trading in the Company’s securities that the availability of the Buyer Group’s funding for the proposed transaction is subject to various conditions. There can be no assurance that all of the funding conditions will be satisfied or that the proposed transaction will be consummated,” AirMedia in a statement.

Amendment No 4

In July, AirMedia Group Inc. (ADR) (NASDAQ:AMCN) entered into Amendment No 4 as part of a transaction which when complete will take the company private. Pursuant to the agreement, the Parent agreed to acquire all outstanding shares of the company not already owned by Mr. Man, Ms. Shao, and Mr. Xu.

The Buyer group also agreed to fund the transaction with proceeds from a loan facility provided by China Merchants Bank Co Ltd pursuant to a debt commitment letter dated Jul 31, 2017. The parties also agreed to increase the parent termination fee from $5.32 million to $10. 64 million.

AirMedia Group Inc. (ADR) (NASDAQ:AMCN) and its subsidiary have since agreed to facilitate the satisfaction of all funding conditions under the Debt Commitment Letter. The termination date of the Merger Agreement has been extended to December 31, 2017.

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 $AMCN and receive breaking news on other hot stocks by signing up for our free newsletter!

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.