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Tag: Cheetah Net Stock

  • Cheetah Net (CTNT) Gains Momentum With Latest Acquisition Deal

    Cheetah Net (CTNT) Gains Momentum With Latest Acquisition Deal

    After a strategic transaction was announced, Cheetah Net Supply Chain Service Inc. (NASDAQ: CTNT) shares jumped 186.50% to $5.36. The company’s recent purchase deal with TW & EW Services Inc., a labor and logistics services provider located in California, is responsible for this notable gain in stock value. The acquisition, which is set to close around December 4, 2024, positions Cheetah Net to strengthen its service offerings and expand its market presence.

    Details of the Acquisition Agreement

    A crucial phase in Cheetah Net’s expansion plan has been reached with the finalization of agreements to purchase TW & EW Services. The acquisition’s entire cost includes $800,000 of unregistered Class A common stock, priced at $1.704 per share, and a $200,000 cash payment. TW & EW will become a fully owned subsidiary of Cheetah Net as part of the agreement. This acquisition is expected to enhance the company’s position in the logistics sector by leveraging TW & EW’s extensive experience in labor and logistics support services.

    Strategic Alignment with Business Transformation

    Since the second quarter of 2024, Cheetah Net has been undergoing a major transformation. Moving away from its previous focus on parallel-import vehicles, which had been adversely affected by macroeconomic conditions in China, the company is now concentrating on logistics and warehousing services. This shift capitalizes on growing international trade flows between China and the U.S., aligning CTNT with more sustainable market opportunities.

    Expanding Operations and Future Growth Prospects

    In addition to the acquisition, Cheetah Net recently relocated its headquarters to Irvine, California. This move places the company in close proximity to the key ports of Los Angeles and Long Beach, enhancing operational efficiency and management focus. While immediate results from these strategic initiatives may take time to materialize, the acquisition of TW & EW Services positions CTNT for substantial growth in the logistics and warehousing industry in the coming quarters.

  • Equity Move Boosts Cheetah Net (CTNT) Shares In Post-Market Trading

    Equity Move Boosts Cheetah Net (CTNT) Shares In Post-Market Trading

    Following the announcement of a significant equity move, shares of Cheetah Net Supply Chain Service Inc. (NASDAQ: CTNT) experienced a robust rally. During the regular trading session, the stock rose by 7.60%, closing at $7.50, and the momentum continued into the post-market session, with CTNT shares surging an additional 10.00% to reach $8.25.

    Details Of The Equity Offering

    Following a successful follow-on offering that resulted in the issuance of 13,210,000 shares of Class A common stock, Cheetah Net (CTNT) stated. At a price of $0.62 per share, the gross proceeds, before placement agency fees and other related costs, were $8.19 million. In this offering, the Company issued all of the shares. The net proceeds from this sale will be used to improve the company’s logistics and storage services as well as to support working capital.

    Recent Performance And Strategic Acquisitions

    In recent business developments, Cheetah Net disclosed its financial results, highlighting the acquisition of Edward Transit Express Group, Inc. (“Edward”) in February 2024. Edward, a California-based carrier specializing in ocean and air transportation, was acquired for $0.3 million in cash and the issuance of 1,272,329 shares of Class A common stock.

    Edward provides warehousing and logistics services to third-party parallel-import vehicle wholesalers and others, complementing Cheetah Net’s financial services business initiated in October 2022. The goal of Cheetah Net’s acquisition strategy is to broaden its offerings beyond the parallel-import car industry and develop into a one-stop shop for financing and services related to international commerce for small and medium-sized businesses.

    In the first quarter of 2024, Cheetah Net said that, following the purchase, it had generated $60,000 in income from non-vehicle-related wholesalers through storage and logistics. The company had $0.9 million in cash on hand as of March 31, 2024, and its working capital was estimated to be worth $6.3 million. This amount is calculated by deducting $1.5 million from current obligations, which comprise the current part of long-term debt and $0.8 million in loans outstanding, from $7.8 million in current assets.