LDK Solar Co. Ltd. (NYSE: LDK) remains a very challenged company. This is to the point that the Chinese solar players is raising cash yet again in an amount that is small enough that you might really think LDK is a private company rather than a public one.
LDK sent out notice on Tuesday that the photovoltaic manufacturer sold the remainder of the 12,000,000 newly issued ordinary shares of LDK Solar to Fulai Investments. With the newly issued shares going off at a price of $1.28 per share, the total purchase comes to about $15.36 million. The original share purchase agreement was dated January 21, 2013, and was amended and supplemented by the parties.
As a part of the share purchase agreement, Fulai has the right to designate two nonexecutive directors to LDK Solar’s board now that the transactions have been consummated. The net proceeds are said to be intended for general corporate purposes in LDK Solar’s operations. We would argue that they are being used for survival.
LDK shares are down almost 8% at $1.08, against a 52-week trading range of $0.71 to $4.57. Yahoo! Finance lists the market cap as being $137.5 million, but we have not tallied up the new shares against the other shares to see whether this includes the newly issued shares.
The Average American Is Losing Momentum On Their Savings Every Day (Sponsor)
If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4%1 today. Checking accounts are even worse.
But there is good news. To win qualified customers, some accounts are paying more than 7x the national average. That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn a $200 bonus and up to 7X the national average with qualifying deposits. Terms apply. Member, FDIC.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.