Skycorp Solar Group Ltd (NASDAQ:PN) shares are trading higher on continued volatility Tuesday as traders react to an acquisition update and fresh financing details that point to a bigger consolidated footprint. Here’s what investors need to know.

What’s Driving Skycorp Solar’s Recent Surge?

Skycorp Solar said it signed a Share Acquisition Agreement in April to buy the remaining 56% of Nanjing Cesun Power for about $20.19 million, taking its ownership to 100%. It also announced a $3.0 million private placement with three institutional investors.

The acquisition consideration is being paid via 7,983,000 newly issued ordinary shares priced at $2.5290 per share, implying an enterprise valuation of about $36.06 million for Nanjing Cesun. The private placement issues 1,694,000 Class A ordinary shares at $1.7703 per share, with the new shares subject to a six-month lock-up.

What Does Skycorp Solar Group Do?

Skycorp Solar Group is primarily a solar PV product provider that manufactures and sells solar cables and solar connectors, and it also provides solar power system solutions services through its subsidiaries. A key part of its revenue is generated from Solar PV products, with Mainland China as its main geography.

The company also has partnerships with multiple IC chip manufacturers and sells new and used GPU and HPC servers, which adds a computing hardware angle alongside the solar business. That mix helps explain why fully consolidating Nanjing Cesun, whose operations include server equipment sales, inverter production, photovoltaic power station operations and energy management systems, can be viewed as a strategic step-up rather than a small bolt-on.

PN Stock Skyrockets Tuesday Afternoon

PN Stock Price Activity: Skycorp Solar Group shares were up 51.66% at $8.22 at the time of publication on Tuesday, according to Benzinga Pro data.

Read Also: These 3 Telecom Stocks Rallied Over 1,000% In A Year: Nvidia Did 75%

Image: Shutterstock