The company announced via a press release that it had signed "a definitive securities purchase agreement with certain institutional investors affiliated with one of the world's leading institutional investment management firms." The aggregate investment will total $55 million at a purchase price of $16.34 a share for for 3,365,973 American Depositary Shares. The company expects the transaction to close by the end of March.
"We are pleased to have attracted top-tier institutional investors to strengthen our institutional ownership profile and augment our capital expenditure needs," said acting CFO Jing An in the statement. "One of our top priorities is to continue to attract long term institutional investors to our company as we execute on our plans to drive shareholder value. With this financing, certain early stage and existing investors can achieve liquidity, and enable additional quality investors to establish a presence in the ChinaCache name."
The stock amassed a volume of 1,669,257, more than double its average of 698,282. It holds a one-year low of $3.50 and hit a low of $19.50 for the day.
TheStreet Ratings team rates CHINACACHE INTL HLDGS -ADR as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation: