Cleantech Solutions International Inc. (NASDAQ:CLNT) Acquisition

Cleantech Solutions International Inc. (NASDAQ:CLNT)

Shares of Cleantech Solutions International Inc. (NASDAQ:CLNT) nearly doubled in value after the company’s subsidiary, Sharing Economy Investment Limited, entered into an exclusivity agreement with Inspirit Studio. The stock was up by 96% after signing the agreement that paves way for the acquisition of a 51% stake in Inspirit Studio.

CLNT Stock Performance

Cleantech Solutions International Inc. (NASDAQ:CLNT)

The stock is currently trading in a short uptrend as it closes in on its 52-week high of $10.70 a share. CLNT is also up by more than 100% for the year after outperforming the overall industry.

The acquisition of a 51% stake in Inspirit Studio will expand the Cleantech Solutions International Inc. (NASDAQ:CLNT) footprint into the delivery service business. Inspirit Studio is the owner of a mobile platform dubbed Anyway that allows people to provide courier services during commuting times. The platform connects senders and freelance couriers who are willing to deliver letters and parcels for a small fee.

“With Anyway, senders can get speedy responses to contact with our freelance couriers who are in close proximity to the senders. There is no limitation on service area and business hours. With a five-month pilot program in Hong Kong, we have signed up over 2,000 freelance couriers, with over successful 6,000 transactions,” said Inspirit Studio, CEO Kurt Tam

Cleantech Solutions International Inc. (NASDAQ:CLNT) is hoping to generate significant value from Anyway given the growth being experienced in the peer-to-peer delivery business. The Chinese market alone grew from 124 million people in 2014 to 231 million last year, and reports project the marketplace to grow to 353 million people by next year.

Power Charger Renting Business

Separately, Cleantech Solutions International Inc. (NASDAQ:CLNT) subsidiary, EC Power has started to provide mobile power charger rental services through convenience stores in Hong Kong and Macau. The company plans to provide the rental chargers in over 700 store locations in Hong Kong and in over 40 locations in Macau.

The Cleantech Solutions International Inc. (NASDAQ:CLNT) subsidiary also plans to expand the services to other regions. There are also plans to acquire a battery production company to capture the burgeoning market demand. The Chinese battery renting market is set to reach 104 million users by the end of the year and grow to 246 million users by 2019.

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.

Cleantech Solutions International Inc. (NASDAQ:CLNT) Explodes On Ecrent Business Collaboration Deal

Cleantech Solutions International Inc. (NASDAQ:CLNT)

Cleantech Solutions International Inc. (NASDAQ:CLNT) and ECrent Capital Holdings have opened discussions about the possibility of sharing a platform in more than 30 countries. The two companies are to form a special committee consisting of independent directors.

Cleantech Solutions Acquisition Talk

The special committee is tasked with the responsibility of exploring various business corporation with ECrent. Cleantech Solutions International Inc. (NASDAQ:CLNT) shares powered higher in the market on news of the Ecrent deal. Fuelling investor sentiment is, reportedly, growing talk that ECrent could end up buying Cleantech solutions.

“The special committee is also expected to engage independent financial and other advisors in connection with such potential transactions. The exclusive period is initially set for three months and may be extended by both parties,” Cleantech Solutions International Inc. (NASDAQ:CLNT) in a statement.

Initial talks and collaborations will center on how the two companies can work to capture a bigger market share in China. Cleantech Solutions International Inc. (NASDAQ:CLNT) through its subsidiaries sells forged and fabricated products to clean technology firms in the country. ECrent, on the other hand, boasts a mass renting platform spread across more than 30 countries.

Chief Operating Officer Appointment

The Ecrent deal follows the appointment of Parkson Yip as Cleantech Solution’s Chief Operating Officer. He will report to the company’s chief executive officer Jianhua Wu. Mr. Yip assumes the COO role with more than 20 years of experience in the information and internet media sectors.

His experience is expected to play a pivotal role in spearheading the company’s next phase of growth while focusing on the Chinese market.

“Parkson’s breadth of experience in driving the development of sharing economy platforms and M&A in the technology, media and telecommunications sector are a welcome addition to the Cleantech Solutions team. I believe his technical and business acumen will serve the Company well as we pursue new business initiatives and set the stage for future growth,” said Mr. Wu.

Cleantech Solutions International Inc. (NASDAQ:CLNT) is currently trading at the lower end of a $4.57 – $6.00 trading range with a 52-week high of $10.70 a share. In Tuesday’s trading session, the stock rallied by more than 20% to highs of $5.08 a share as traders reacted to the Ecrent deal news. However, the stock ended the day at $4.59 a share, representing an 8.77% gain from the previous day closing price.

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 $CLNT 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.