Origin Agritech Ltd. (NASDAQ: SEED) is having a great start to the trading session this morning, and for good reason. The company announced that it has received a large investment from a new strategic investor. Of course, the news excited investors, sending the stock on a run for the top. Today, we’ll talk about:
- The investment;
- what we’re seeing from SEED stock; and
- what we’ll be watching for ahead.
SEED Climbs On Large Investment
As mentioned above, Origin Agritech is having an incredibly strong start to the trading session this morning after announcing the receipt of a large investment. In a press release issued early this morning, the company said that it has entered into a Share Subscription agreement with Longhan Investment Management. According to the agreement, Longhan will purchase 1,397,680 shares of SEED common stock for an aggregate purchase price of $7,743,147.20.
The company also reminded investors that it and Longhan recently entered into a strategic cooperation agreement. According to the agreement, SEED and Longhan will work together to start the commercialization of Integrated Saline-Alkaline Land Reclamation in 2019, both in China and around the world.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of Origin, the news proved to be overwhelmingly positive. After all, the deal announced today came with a face value of nearly $8 million that will give the company the funds it needs to continue to grow. Not to mention, smart money follows big money, and the big money investor just gave the company a bode of confidence. So, it comes as no surprise that excited investors are sending the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:10), SEED is trading at $7.90 per share after a gain of $0.95 per share or 13.67% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA finance team will continue to keep a close eye on SEED. In particular, we’re interested in following the story surrounding the company’s relationship with Longhan and the revenue generated through their recently announced cooperation agreement. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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