Notable Stock to Watch: Highpower International (NASDAQ:HPJ)

Highpower International (NASDAQ:HPJ) spotted trading 6.80% off 52-week high price. On the other end, the stock has been noted 104.83% away from the low price over the last 52-weeks. The stock changed 39.02% to recent value of $4.24. The stock transacted 2022994 shares during most recent day however it has an average volume of 32.32K shares. The company has 15.26M of outstanding shares and 10.45M shares were floated in the market.

On June 28, 2019, Highpower International (NASDAQ:HPJ) a developer, manufacturer, and marketer of lithium ion and nickel-metal hydride (Ni-MH) rechargeable batteries, battery management systems, and a provider of battery recycling,  announced that it has entered into a definitive agreement and plan of merger (the Merger Agreement) under which HPJ Parent Limited (Parent), an exempted company with limited liability incorporated under the laws of the Cayman Islands and formed by a consortium consisting of Mr. Dang Yu (George) Pan, the Company’s Chairman and Chief Executive Officer and a stockholder of the Company, Mr. Wen Liang Li, a director and stockholder of the Company, Mr. Wen Wei Ma, a stockholder of the Company, and Essence International Capital Limited, a company incorporated in Hong Kong, will acquire Highpower through a merger with a wholly-owned subsidiary of Parent (the Merger).

Subject to the terms and conditions of the Merger Agreement, at the effective time of the Merger, Highpower stockholders will be entitled to receive US$4.80 in cash for each share of Highpower common stock (collectively, Shares), except Shares held by the consortium that are contributed to Parent prior to the effective time and dissenting shares seeking appraisal rights. The merger consideration represents a premium of approximately 67% over the Company’s closing price of US$2.88 per share on June 1, 2018, the last trading day prior to the Company’s announcement of its receipt of a going-private proposal.  Parent intends to fund the Merger consideration with the proceeds from an equity investment of US$51,136,733 by Essence International Capital Limited (the Sponsor), pursuant to the terms of an equity commitment letter.

The Board of Directors of Highpower, acting on the recommendation of a special committee of independent and disinterested directors (the Special Committee), unanimously approved the Merger Agreement with directors Pan and Li abstaining.

The Merger, which is currently expected to close during the third quarter, is subject to various closing conditions, including the adoption of the Merger Agreement by Highpower’s stockholders and an affirmative vote of at least a majority of all outstanding Shares unaffiliated with the consortium. If completed, the Merger will result in the Company becoming a privately-held company, and its Shares will no longer be listed on the NASDAQ Global Market. Its earnings per share (EPS) expected to touch remained -22.40% for this year. HPJ has a gross margin of 20.50% and an operating margin of 6.20% while its profit margin remained 4.80% for the last 12 months.

According to the most recent quarter its current ratio was 1 that represents company’s ability to meet its current financial obligations. The price moved ahead of 33.52% from the mean of 20 days, 26.17% from mean of 50 days SMA and performed 46.93% from mean of 200 days price. Company’s performance for the week was 38.56%, 23.26% for month and YTD performance remained 95.39%.

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