EXELED HOLDINGS IN COM USD0.01 (OTCMKTS:ELED)
EXELED HOLDINGS IN COM USD0.01 (OTCMKTS:ELED) has refuted claims that it is in discussions with a potential acquirer. Further, in a press release, the company has reiterated plans to continue operating as a standalone company. The management team has also stressed that there have been no material changes in the company’s business or long term prospects.
However, the market is buying on the rumor and shares of ELED are up over 25% in morning trading.
ExeLED Business Overview
EXELED HOLDINGS IN COM USD0.01 (OTCMKTS:ELED) is a diversified holding company focused on acquiring complementary companies with operations around LED lighting solutions. The company’s wholly owned subsidiary Energie LLC, located in Colorado, targets the multibillion-dollar North American lighting market.
To become a leading provider of advanced lighting solutions is EXELED HOLDINGS IN COM USD0.01 (OTCMKTS:ELED), core objective. The company intends to grow, innovate, and fully capture the rapidly growing lighting market opportunities. ExeLED has already sold some of its products to education and commercial enterprises. Five European manufacturers and one in Taiwan currently produce the company’s products.
“Our Advisory Team intends to provide access to the best resources to apply LED technology for our subsidiaries. We also intend to provide buying contracts with LED component manufacturers to control cost while staying at the leading edge of the technology,” ExeLED in a statement.
EXELED HOLDINGS IN COM USD0.01 (OTCMKTS:ELED) is planning to lead the LED sector that is continually expanding. The market is currently worth $29 billion and could be worth $33 billion by year-end.
Q1 Financial Results
For the first three months of the year, EXELED HOLDINGS IN COM USD0.01 (OTCMKTS:ELED) posted a net loss of (-$816,917) a drop from a net loss of (-$890,586) reported for the corresponding quarter last year. Revenues in the quarter dropped to $37,275 from highs of $98,555 reported in Q1 2016. Research and development expenses in the quarter totaled $68,604 compared to $72,991 as of Q1 2016.
Sales and marketing expenses in the first quarter totaled $999, compared to $12,715 reported in Q1 2016. EXELED HOLDINGS IN COM USD0.01 (OTCMKTS:ELED) exited the quarter with cash and cash equivalent of $53,398 compared to $5, 454 as of. last year
Prior to EXELED HOLDINGS IN COM USD0.01 (OTCMKTS:ELED) refuting claims about being acquired, the company had been dead silent in the market. However, the stock continues to elicit renewed interest from investors in the wake of acquisition talk. The fact that company was able to deliver outstanding returns without any evidence to collaborate the same also appears to be fuelling interest from traders.
EXELED HOLDINGS IN COM USD0.01 (OTCMKTS:ELED) stock was down by 5.95% in Friday’s trading session ending the week at $0.00790 a share.
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: 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.