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Liquidmetal Technologies lifted by Chinese cash injection

Professor Lugee Li, who is the chairman and majority stockholder of Shenzhen-listed EONTEC, a global manufacturing company, has made a major investment in Liquidmetal

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Shares shot up on the back of a $63.4mln cash injection

Shares in amorphous alloys specialist Liquidmetal Technologies Inc (OTCMKTS:LQMT) rose like mercury in early deals as the company revealed details of a cash injection.

The company is to raise up to $63.4mln through the sale of equity to a private investor, Professor Lugee Li, who is the chairman and majority stockholder of Shenzhen-listed EONTEC, a global manufacturing company.

Professor Li will join the board of Liquidmetal Technologies.

Tied into the cash injection is a cross-licensing agreement between the two companies.

Liquidmetal said EONTEC possesses a full set of mass production capabilities for zirconium based amorphous alloys, including material refining, tooling, and machining, surface treatment, as well as equipment and machine building capabilities for making large parts out of bulk metallic glass.

“EONTEC’s capabilities complement LQMT’s focus on production of high-performance parts, allowing LQMT to address a broad range of market opportunities from automotive, medical, and industrial customers. This partnership positions LQMT well to support design and production globally at a vastly increased pace,” said Professor Li.

Thomas Steipp, president and chief executive officer of Liquidmetal, said: “This investment and partnership recognizes the significant advancements in technological and commercial capabilities that Liquidmetal has forged over the last five years. Our brand and market positions in North America and Europe are without peer.

“This financing transaction and cross-licensing agreement provides us with the platform and resources necessary to establish a global market in Liquidmetal alloy solutions and to fast-track the market development of our core offerings. With this partnership, we will extend our capabilities to significantly larger parts, as well as offering substantially lower price points for some consumer markets. EONTEC and Liquidmetal each bring significant capabilities to this partnership, and we believe that result will be a much larger market that develops much more quickly,” Steipp added.

Shares in Liquidmetal rose by more than a quarter in the first hour of trading to 10.3 cents.

Quick facts: Liquidmetal Technologies

Price: 0.097 USD

OTCMKTS:LQMT
Market: OTCMKTS
Market Cap: $88.69 m
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