For those of you interested in Chinese reverse mergers… CNIT’s share price jumped by around two-thirds today.
Back in 2013 and 2015, I wrote about the company. In 2015, CNIT bought a company called Biznest. Apparently they did not own Biznest already… despite CNIT email addresses showing up on Biznest’s domain registration and despite having the CNIT logo on Biznest’s website.
*Disclosure: I am short CNIT.
Here’s a list of ideas I’ve talked about on this blog that could be relevant today.
From the press release filed on EDGAR [emphasis mine]:
SHENZHEN, China, March 24, 2015 /PRNewswire/ — China Information Technology, Inc. (the “Company” or “CNIT”) (Nasdaq GS: CNIT), a leading provider of integrated cloud-based platform, exchange, and big data solutions to the Chinese new media industry, today announced that the Company has completed its acquisition of Shenzhen Biznest Internet Software Co. Ltd. (“Biznest”), a leading cloud computing hardware and software company in China. As previously announced, the total consideration of the transaction is approximately $15 million, consisting of approximately $7.5 million to be paid in cash and 1,543,455 ordinary shares to be issued by the Company. The transaction consideration has been fully paid by March 18, 2015 and the modification registration of Biznest with the competent administration for industry and commerce has also been completed.
Now I think that CNIT has figured out its identity as a hot cloud technology company. And now there is no reason for me to be confused about why Biznest’s domain name registration listed a chinacnit.com email address. (See my previous post on CNIT’s multiple personality disorder.)
*Disclosure: No position. I swing trade in and out of stocks. This may be a mistake on my part… who knows.
EDIT (3/27/2015): As of 3/27/2015. I am short CNIT. I may cover my position without updating my blog.
CNIT is a very curious company. On September 4, 2013 it issued a press release titled “China Information Technology, Inc. Entered Into Exclusive Cooperation Arrangements with Biznest Internet &Software Co.” (see the 6-K filing). One might be led to believe that Biznest Internet & Software is an independent company.
However, the domain registrations involved with Biznest show chinacnit.com email addresses.