On June 16, 2011, Shares of WPCS International Incorporated (Public, NASDAQ:WPCS) surges more than 30% after the Multiband announced that it has signed a non-binding letter of intent (LOI) to acquire WPCS International Incorporated, based in Exton, Penn.
Under the terms of the transaction WPCS shareholders would receive $3.20 in cash for each share of WPCS stock they own. This acquisition deal is expected to close by the end of the third quarter of 2011.
In addition, Multiband has entered into a separate agreement to acquire an approximate 10% interest in WPCS. Under this agreement, Multiband will acquire approximately 710,000 shares of WPCS’s outstanding common stock for cash at $3.20 per share. To fund the balance of the transaction, Multiband has received a commitment letter for a senior debt facility. This facility will be used to repay the entire $29 million promissory note of Multiband held by DirecTech and to provide the capital to acquire 100% of WPCS, as well as to fund other strategic opportunities.
Shares of the company went up by 30.94% to $2.92 with volume of 697,085 shares. The stock has 52 week range of $2.20-$4.74. The market cap of the stock stands at $20.45 million, accompanied with EPS of -1.41.
WPCS International Incorporated (WPCS) is a global provider of design-build engineering services for communications infrastructure. The Company provides engineering services, including wireless communication, specialty construction and electrical power to the customers in the public services, healthcare, energy and corporate enterprise markets globally.
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