On March 15, Tantech Holdings Ltd. (TANH) announced a proposed public offering of its securities. Consequently, the stock nosedived in the after-hours session. Earlier today, the company had also announced regaining compliance with Nasdaq’s minimum bid price requirement.
During the regular session, the stock remained in the red despite the news of regaining compliance with Nasdaq. TANH suffered a decline of 12.09% during the session while 1.55 million shares exchanged hands. The stock closed the session at a price of $1.60 per share. Following the public offering news, the stock collapsed to lose a huge 53.75% in the after-hours. Thus, TANH was trading at $0.74 apiece in the after-hours at a volume of 926.39K shares.
The bamboo-based charcoal products developer, Tantech Holdings Ltd. is based in China. Currently, the company’s 6.4 million outstanding shares trade at a market capitalization of $11.65 million. TANH stock has declined by 65.19% year to date while it suffered a loss of 90.30% last year. In the past five days, the stock has gone down by 21.18%.
TANH’s Latest News
On Tuesday, the company announced its intention for offering its securities in a public offering. Moreover, the book-running manager for the offering is Aegis Capital Corp. The company plans on using the net proceeds from the offering for general corporate purposes along with other business opportunities.
The size, terms, and complete details of the offering were not shared.
Additionally, TANH also announced, regaining compliance with Nasdaq Listing Rule 5550(a)(2). The company was in non-compliance with Nasdaq’s minimum bid requirement due to its below $1.00 closing share price over 30 consecutive days. Hence, as the company’s shares closed at/above the required minimum bid price for 10 consecutive days, the stock regained compliance.
Financial Analysis
On October 22, the company declared its financial results for the first half of 2021, which ended on June 30.
In the first half of 2021, TANH’s total revenues declined by 9.9% to $20.6 million against $22.9 million in the year-ago period.
Moreover, the company had a loss of $5.7 million before income tax in the first half of 2021. Comparatively, the company had an income of $1.7 million before tax in the year-ago period.
In addition, the company had a net loss of $0.18 per basic and diluted share in H1 2021, against a net income of $0.04 per share in the comparative period of 2020.
On June 30, 2021, the company had $40.7 million cash on hand and maintained a positive working capital.
