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.
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.
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.