Yunhong CTI shares are pumping without any solid news in the market.
Investors seem to be jumping in Yunhong CTI Ltd. (CTIB)—the custom film products manufacturer. However, this is nothing much conclusive in the market today. The trading volume has rocketed over 167 million and still going, as we write this.
So, what’s exactly behind CTIB’s push today? Seemingly the day traders are making the stock gains count. A lot has been going around on social media where people are mentioning their profits made from boosting shares higher.
For instance, one of the users on Twitter highlighted his gains.
Shares of Yunhong CTI Ltd. (CTIB) are up by 47.27% trading at $3.49, at the time of press. But it will calm down in the next 48 hours’ time once the traders move out after making gains from the stock. However, looking over the long-term prospect, the company has shown much promise after fighting a tough period during the pandemic last year.
Late last year, the company announced that they have seen higher customer demand due to which it will install a second production machine at Lake Barrington, Illinois. The new machine is expected to increase Yunhong’sannual North American production capacity of foil novelty balloons by almost 28%. This company hinted the production to begin by the end of the year 2020.
With this, the company now has two main machines at its facility in Lake Barrington. The first machine has played a pivotal role in the company’s U.S. product manufacturing for most of its history. The latest installation at its facility will boots things up and work at the full potential that will support in meeting the demand for its foil novelty balloons.
In that premise, the company recently announced that it has signed a stock purchase agreement with LF International Pte. Ltd. With the following agreement, the investor made a $1.5 million investment in Yunhong in reward of 170,000 shares of the Company’s Series C Convertible Preferred Stock.
LF International is the company controlled by the Company’s Chairman Mr. Yubao Li. So, the stake purchase is a strategic move by the company. The investing firm will receive a quarterly dividend payable at the annual rate of 8%, based on the agreement. The dividend may be delivered in the form of cash or shares of common stock.
Yunhong CTI Ltd. (CTIB) is expanding its ecosystem amid such harsh times, which shows that it is strong enough to pull things off for the long run. The increasing demand for the company’s products has kept Yunhong pushing to its limits. With the unfolding of current developments, CTIB’s long-term prospect seems a shiny one.