CTI Industries (CTIB) Stock Rockets On LOI To Divest

CTI Industries CTIB Stock News

CTI Industries Corp. (NASDAQ: CTIB) is having an incredibly strong start to the trading session this morning, trading on gains of more than 340% as we head into mid-day. While the company hasn’t issued a press release, an SEC filing surrounding a Letter of Intent seems to be the reason for the gains. Here’s what’s happening:

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

CTIB Stock Soars On Letter Of Intent To Divest

Investors in CTI Industries have been looking for the company to make changes to improve the overall financial and operational picture. According to an SEC filing issued early this monring, one of those changes may take place soon.

In a filing issued this morning, CTIB announced that it executed a non-binding letter of intent, or LOI. The LOI, entered into on December 5, 2019, surrounds the intent to divest the company’s subsidiary, known as Flexo Universal S.A. de R.L de C.V. Flexo Universal is headquartered in Guadalajara, Mexico.

In the filing, CTIB said that the transaction is subject to several contingencies. Of course, these contingencies include a financing contingency and lender approval.

Why This Move Is Leading To Such Gains

At the end of the day, CTI Industries is financially caught between a rock and a hard place. Investors are hoping that the company’s efforts to restructure its finances and core focus will yield improvements in value.

With the SEC filing issued this morning, CTIB is showing investors that it is taking steps in the right direction, ultimately with the goal of improving shareholder value.

Considering the overwhelmingly high short interest on the stock as of late, such good news seems to have triggered a short squeeze, with short sellers racing to abandon their positions, sending the stock up dramatically.

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

Don’t Miss The Next Big Story!

Join our free mailing list below to receive real-time news alerts!

Subscribe Today!

* indicates required

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.