China XD Plastics Company Limited (NASDAQ:CXDC) spotted trading -63.55% off 52-week high price. On the other end, the stock has been noted 46.34% away from the low price over the last 52-weeks. The stock changed -3.65% to recent value of $0.92. The stock transacted 167797 shares during most recent day however it has an average volume of 103.16K shares. The company has 69.05M of outstanding shares and 33.87M shares were floated in the market.
On May 08, 2020, China XD Plastics Company Limited (NASDAQ:CXDC) one of China’s leading specialty chemical companies engaged in the development, manufacture and sale of polymer composite materials primarily for automotive applications, released that its board of directors (the Board) has received a preliminary and non-binding proposal letter, dated May 7, 2020, from (i) Mr. Jie Han (Mr. Han), the Company’s Chairman and Chief Executive Officer, and (ii) XD. Engineering Plastics Company Limited (together with Mr. Han, the Buyer Group), a company incorporated in the British Virgin Islands and wholly owned by Mr. Han, proposing to acquire all of the outstanding shares of common stock (the Shares) of the Company not currently owned by the Buyer Group in a going-private transaction for US$1.1 per Share in cash, subject to certain conditions. The US$1.1 per Share price represents a premium of approximately 19.6% to the closing price of the Company’s Shares on May 6, 2020, a premium of approximately 19.5% to the average closing price of the Company’s Shares during the last 30 trading days, and a premium of approximately 4.9% to the average closing price of the Company’s Shares during the last 60 trading days.
The Buyer Group currently beneficially owns the Shares representing approximately 70% of the voting power and approximately 50.1% of the share capital of the Company. The Buyer Group has engaged O’Melveny & Myers LLP as its U.S. legal advisor for the proposed transaction. According to the proposal letter, the Buyer Group plans to finance the acquisition with a combination of debt and equity capital. The proposal letter states that the equity portion of the financing would be provided by the Buyer Group in the form of cash and rollover equity in the Company and through available cash at the Company, and that the debt portion of the financing would be provided by loans from third party financial institutions, if required. A copy of the proposal letter is attached hereto as Annex A.
Its earnings per share (EPS) expected to touch remained -46.20% for this year. CXDC has a gross margin of 16.00% and an operating margin of 9.90% while its profit margin remained 4.10% for the last 12 months.
According to the most recent quarter its current ratio was 1.1 that represents company’s ability to meet its current financial obligations. The price moved ahead of 0.38% from the mean of 20 days, -3.42% from mean of 50 days SMA and performed -46.16% from mean of 200 days price. Company’s performance for the week was -2.94%, 2.46% for month and YTD performance remained -48.49%.