Technology stocks are broadly lower, with shares of technology
companies in the S&P 500 sinking 1.0%.
In company news, WPCS International Inc (
) is down more than 45%, steadily losing ground after announcing a
deal to acquire BTX Trader, which is developing a proprietary
trading platform for the bitcoin industry.
Shares recently traded at $1.71 a share, sinking 45.4%, after
earlier falling to a new, all-time low at $1.57. Perhaps in
response to the sharp decline in its stock price, WPCS this
afternoon said it has re-scheduled a conference call to Thursday to
discuss the BTX Trader acquisition along with its fiscal Q2
financial results. The conference call will be held after the
market close at 5 p.m. ET.
In announcing the purchase last night, WPCS said it sees the
deal adding a new line of business for the communications-equipment
manufacturer. Terms of the transaction were not immediately
disclosed but the company said it will fund the acquisition with
the sale of Series E preferred stock, selling 2,348 of the shares
for $1,000 each, generating nearly $2.35 million in gross
Each preferred share will pay 12% interest per year and is
convertible into common stock at its stated value plus accrued
dividends divided by $3.50 per share. The company also issued
warrants to purchase an additional 1.5 million shares, exercisable
at $5 apiece.
The deal will require WPCS to seek shareholder approval to
increase its authorization to issue up to 75 million shares.
WPCS originally had planned to release its Q2 financial results
for the three months ended Oct. 31, followed by a call-in
conference discussion, on Dec. 16 but cancelled those events last
week without disclosing a reason.
In other sector news,
(+) GRPN, (+2.8%) Northland Capital Partners begins coverage of
the daily deal company with an Outperform rating and a price target
of $13 a share.
(-) GOGO, (-12.9%) Ripplewood Holdings distributes all 27.6
million shares of GOGO stock it owns to the private-equity fund's
limited partners. Three Ripplewood-affiliated directors on the GOGO
board also resign.
Copyright (C) 2013 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.