E-Future Information (EFUT) Shares Soar After Billionaire Purchases Over 50% Of The Shares

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Shares of E-Future Information (EFUT) skyrocketed late this week as news broke that Chinese billionaire investor Li Zhongchu had purchased just over 50% of the company’s outstanding shares, leaving him with as a majority shareholder.

imagesStarting on Monday, November 16, and ending on Monday, November 23, Zhongchu purchased a total of 2,453,966 of the company’s 4,858,651 ordinary shares issued and outstanding.  This information was revealed in a Form 6-K/A filing with the U.S. Securities and Exchange Commission on November 23.  Below you will find the transaction data:

November 16, 2015 – 1,443,628 shares purchased – $6.37 average price per share
November 17, 2015 – 127,518 shares purchased – $6.32 average price per share
November 18, 2015 – 465,775 shares purchased – $6.93 average price per share
November 20, 2015 – 4,750 shares purchased  – $6.48 average price per share
November 23, 2015 – 412,295 shares purchased  – $8.45 average price per share

Clearly the market liked the fact that Li Zhongchu, whose estimated net worth surpasses $4 billion, has taken a majority position in this company.

The share price rose 94.97% or $7.74 on November 27, hitting $15.89. A total of 4,135,321 shares traded hands on the day. It will be very interesting to watch and see how the shares react after traders are able to digest this news over the weekend.  As for what Li Zhongchu’s ultimate intentions are, that’s still anyone’s guess.  Shares had been trading steadily in the $4 range until the middle of this month.  On Friday it appeared as if shares would reach the $18 mark, but traders pulled back the reigns shortly before the market closed at 1PM EST.

eFuture Information Technology Inc. (eFuture) is a holding company which operates through its subsidiary, eFuture (Beijing) Royalstone Information Technology Inc. The Company provides software and mobile social shopping network services to China’s retail and consumer goods industries. eFuture provides a one-stop integrated portfolio of software and services for the front-end supply chain from factory to consumer on seven verticals which include: shopping mall, fast moving consumer goods (FMCG), department store, grocery, logistics, specialty store and online retailers.

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