A123 Stock Soaring — To $0.19
Oct 22nd 2012 12:47PM
Shares of A123 Systems Inc. (NASDAQ: AONE) have jumped more than 50% (again) today after one of the company's lenders and shareholders, China's Wanxiang Group Corp., said it would waive its rights to exercise warrants on A123 stock nor will the the Chinese firm make the loans to A123 that it had once promised.
Last week Johnson Controls Inc. (NYSE: JCI) offered to buy A123's automotive business for $125 million and Johnson's offer of $72.5 million in debtor-in-possession financing for A123 was accepted on an interim basis by the bankruptcy court.
At a bankruptcy court hearing, Wanxiang said that it would compete with Johnson to acquire A123, but offered no bid at the time.
Shares of A123 sank to $0.05 last Tuesday, the day that Johnson made its offer and that A123 filed for bankruptcy protection. Since then the stock has risen nearly 400% and today's volume is approaching 70 million shares traded.
The stock is currently trading at $0.19 in a 52-week range of $0.05 to $3.91.