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Tag: Recon Technology

  • Recon Technology, Ltd. (RCON) Stock Plummets Following Announcement of USD$55 Million Registered Direct Offering

    Recon Technology, Ltd. (RCON) stock prices plummeted by a significant 19.31% shortly after market trading commenced on June 14th 2021, bringing the price per share down to USD$5.03 early on in the trading day.

    Registered Direct Offering

    June 14th, 2021 saw the company announce having entered into a securities purchase agreement with various accredited investors. The agreement will see the purchasing of USD$55 million worth of the company’s class A ordinary shares in a registered direct offering. Pre-funded warrants to purchase Class A ordinary shares may be issued in lieu of the shares themselves, with the class A ordinary shares warrants being issues in a concurrent private placement.

    Size of Offering

    As per the agreement, the company has agreed to sell a total of 8,814,102 Class A ordinary shares, or pre-funded warrants in lieu thereof. Concurrently, warrants for the purchase of 8,814,102 class A ordinary shares will be offered in a private placement transaction. The pre-funded warrants will have a set exercise price of USD$0.01 per share, with the option of immediate exercising upon the date of issuance until they are exercised in full.

    Pre-Funded Warrants

    The pre-funded warrants will be issued to certain investors who will have elected to purchase them instead of the Class A ordinary shares up for sale in the offering. This is because the investors would otherwise have surpassed 9.99% beneficial ownership of the company’s Class A ordinary shares immediately after the offering.

    Pricing of Offering

    Ordinary share warrants will be exercisable instantly as of the date of issuance, with a set exercise price of USD$6.24. The warrants for ordinary shares will expire in five and a half years from the date of issuance. The purchase price for one unit comprised of one ordinary share and one corresponding ordinary share warrant will also be USD$6.24. Gross proceeds generated from the offering are expected to be USD$55 million before the deduction of expenses related to the offering. Subject to customary closing conditions, the registered direct offering is expected to close around June 15th, 2021.

    Future Outlook for RCON

    Armed with a solid liquidity position from their private placement, RCON is poised to capitalize on the opportunities presented to it. The company is keen to continue its trajectory of success and usher inorganic growth over the long term. Current and potential investors are hopeful that the management will leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • Early Morning Vibes: 3 Best Performing Stocks Under $3

    Early Morning Vibes: 3 Best Performing Stocks Under $3

    On December 8, American stock exchanges closed at historic highs. The S&P 500 Index climbed 0.28% to 3702 points, the Dow Jones added 0.35%, the NASDAQ rose 0.5%. The purchases spurred hope for fiscal stimulus, as well as the start of the UK vaccine distribution. The health and energy sectors were the top gains, rising 0.73% and 1.57%, respectively. The real estate segment turned out to be an outsider, losing 0.5%.

    Corporate news

    Tesla (TSLA: + 1.3%) announced a $ 5 billion additional share issue.

    Productivity software maker Smartsheet (SMAR: + 11%) reported strong quarterly results and improved management forecasts.

    Apparel retailer Stitch Fix (SFIX: + 39%) posted a good quarterly report, with a pleasant surprise for investors the company’s profit at a consensus loss.

    Today, world stock markets are showing mostly positive dynamics. The likelihood of accepting an economic aid package is increasing. The day before, Treasury Secretary Stephen Mnuchin presented House Speaker Nancy Pelosi a $ 916 billion economic support bill. Unlike the bipartisan stimulus package last week, the bill provides for a one-time payment of $ 600 to each citizen instead of $ 300 weekly in addition to the unemployment. Republican leaders have already expressed support for Mnuchin’s bill. We believe that the congressmen have not yet been so close to a compromise in the past few months, and this is encouraging.

    Another supportive factor was a report released by the FDA that the Pfizer / BioNTech anticancer vaccine is completely safe and highly effective. The probability of its approval on December 10 is close to 100%, and on the 11th, the distribution of the drug in the United States may begin. We estimate the risk that the pharmaceutical giant will face difficulties in mass production of the vaccine as minimal, although not zero.

    Today Top Movers Under $3

    Cinedigm Corp (CIDM) is up 50.35% at $1.30 in early morning on Wednesday after

    Spherex revealed a strategic alliance with Cinedigm (NASDAQ: CIDM) to drive Cinedigm’s global growth.

    Usio Inc (USIO) is up 38.80% in Wednesday’s premarket session after reporting that it has entered into a non-binding Letter of Intent (LOI) to acquire the assets of Information Management Solutions, LLC (IMS).

    Recon Technology Ltd (RCON) was taking the aerial route in the after-market session as it surged 95.8% to $2.82, after a China-based independent solutions integrator in the oilfield service and environmental protection, electric power, and coal chemical industries, today announced its financial results for the fiscal year 2020.

    Top Upgrades & Downgrades

    JP Morgan turned bullish on Array Technologies Inc. (ARRY), upgrading the stock to “Overweight” and assigning a $41.0 price target.

    Community Trust Bancorp Inc. (CTBI) has won the favor of Piper Sandler’s equity research team. The firm upgraded the shares from Neutral to Overweight.

    Earlier Wednesday JP Morgan reduced its rating on Bloom Energy Corporation (BE) stock to Neutral from Overweight and assigned the price target to $26.0. With shares trading at around $30.59, the Wall Street firm thinks Bloom Energy Corporation’s stock could decline more than -62.5%.

    DZ Bank analysts reduced their investment ratings, saying in research reports covered by the media that its rating for American Express Company (AXP) has been changed to Hold from Buy and the new price target is set at $128.0.

    Analysts at KeyBanc downgraded Talos Energy Inc. (TALO)‘s stock to Sector Weight from Overweight Wednesday.

    Latest Insider Activity

    Freeport-McMoRan Inc. (FCX) Vice Chairman, President & CEO ADKERSON RICHARD C announced the sale of shares taking place on Dec 04 at $25.17 for some 467,887 shares. The total came to more than $11.78 million.

    Discovery Inc. (DISCA) Director LOWE KENNETH W sold on Dec 04 a total 1,202,403 shares at $25.22 on average. The insider’s sale generated proceeds of almost $2.32 million.

    Regulus Therapeutics Inc. (RGLS) 10% Owner Sonsini Peter W. declared the purchase of shares taking place on Dec 04 at $0.62 for some 4,398,602 shares. The transaction amount was around $2.74 million.

    Hepion Pharmaceuticals Inc. (HEPA) CEO and Director Foster Robert T bought on Dec 08 a total 25,259 shares at $1.58 on average. The purchase cost the insider an estimated $39,418.

    Earnings To Watch Today

    Top US earnings releases scheduled for today include Asana Inc. (NYSE:ASAN). It will announce its Oct 2020 financial results. The company is expected to report earnings of -$0.37 per share from revenues of $54.14M in the three-month period.

    Analysts expect Mesa Air Group Inc. (NASDAQ:MESA) to report a net income (adjusted) of -$0.02 per share, when the bank releases its quarterly results shortly. Revenue for the fiscal quarter ended Sep 2020 is predicted to come in at $92.95M.

    Adobe Inc. (ADBE), due to announce earnings after the market closes today, is expected to report earnings of $2.66 per share from revenues of $3.36B recently concluded three-month period.

  • Why was Recon Technology, Ltd. (Nasdaq: RCON) shares bursting in the Post-market session?

    Why was Recon Technology, Ltd. (Nasdaq: RCON) shares bursting in the Post-market session?

    Recon Technology, Ltd. (Nasdaq: RCON) stock was taking the aerial route in the after-market session as it surged 95.8% to $2.82, after a China-based independent solutions integrator in the oilfield service and environmental protection, electric power, and coal chemical industries, today announced its financial results for the fiscal year 2020.

    Compared to the fiscal year 2019, gross sales were roughly RMB65.8 million ($9.3 million), reflecting a decline of 35.8 percent.

    Automation devices and services sales declined to roughly RMB51.4 million ($7.3 million), which reflects a 19.1 percent decline from the fiscal year 2019. The decline was largely due to the delayed approval by Shenhua Group of many projects and fewer expenses, and reduced orders from Xinjiang East Hope New Energy Co., Ltd.

    Revenue from equipment and accessories declined to approximately RMB14.2 million ($2.0 million), reflecting a 40.6 percent decline from the fiscal year 2019, primarily due to reduced demand for the company’s goods from oilfield firms as a result of low oil prices.

    Sales from the environmental security of the oilfield declined by 99.2 percent to almost nil for this time, mostly caused by the late approval audit of the Gansu development project, so orders were not met, and revenue was not accepted during the 2020 fiscal year.

    Total revenue costs declined by 36.4 percent to roughly RMB46.2 million ($6.5 million), primarily as a result of lower revenue-related costs.

    Gross profit declined to roughly RMB19.6 million ($2.8 million), reflecting a decline of 34.4 percent from the fiscal year 2019. The gross margin, relative to 29.2 percent last year, was held at the same pace of 29.8 percent. In fact, the gross margin for the automation and machinery divisions in the fiscal year 2020 has all increased. The Organization estimates that when the treatment process is finished and income is recognized, the gross margin for the oilfield environmental management division will return to a level of 40 percent.

    Total operating costs fell to around RMB39.8 million ($5.6 million), reflecting a 26.5 percent fall.

    Sales and service costs were around RMB4.4 million ($0.6 million), reflecting a decline of 51.3 percent from the fiscal year 2019. As the Firm continued to manage its operational costs, as well as the ban on travel and outdoor sports levied by the PRC government due to the COVID-19 during the fiscal year 2020, this decline was largely due to lower travel and entertainment expenses.