Shares of the Tantech Holdings Ltd (TANH) stock were bullish in the pre-market today on May 28, 2021, following the announcement of a $7.0 million private investment by Tantech Holdings. TANH’s stock price saw a surge of 1.72% to reach $1.18 a share at the time of this writing. The per-share price of TANH stock was $1.16 with no loss or gain at the previous closing. Let’s further discuss the current happenings.
Private Placement:
Tantech Holdings Ltd (TANH), a manufacturer of bamboo-based charcoal products in the People’s Republic of China, on May 27, 2021, announced that it is willing to sell 5,380,000 of its shares to various purchasers. The per-share price under this private placement is US$1.30 which would result in the net proceeds of US$ $6,994,000.Tantech stock would use net proceeds resulting from private placement in its general corporate purposes and working capital needs. The private placement would close or before June 11, 2021.
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Financial View of TANH stock:
A month ago, TANH stock did announce full-year 2020 financial results the highlights of which are given below.
- TANH stock revenue was reduced by $42.3 million in 2020 as compared to $49.2 million in 2019 due to the COVID-19 breakout in China. Revenue from the consumer products decreased significantly while revenue from the trading segment increased over the year.
- The gross margin for TANH stock in the year 2020 was decreased to 10.6% as compared to $12.1% in 2019.
- Gross profit showed a 25% decline in 2020 to drop at $4.5 million in comparison to $6.0 million in 2019.
Expenses for TANH stock in 2020:
- Selling expenses of TANH stock were increased by 205.3% to $1.0 million in 2020 while these expenses were $0.3 million in the year before.
- TANH stock spent $1.0 million in general and administrative expenses, 79.55 lower than the expenses of $4.7 million in 2019.
- Increased research-based activities in the electric vehicle segment and electrical battery resulted in an increase of $0.6 million in research and development expenses of Tantech stock in the year 2020.
- Other expenses of TANH stock reduced by 25.3% to $0.3 million in 2020 from $0.4 million in 2019.
Wrap Up:
Investors are responding to the announcement of a $7.0 million private placement by the TANH stock. Due to the COVID-19 outbreak, the business of Tantech Holdings was adversely affected as the government imposed strict lockdown in the country to cope with COVID-19. However, Tantech generated significant revenue from its charcoal-based products which include charcoal masks, sanitation, and air purification products.
