Yulong Eco-Materials’ stock rockets more than 7-fold after closing Millennium Sapphire deal

Yulong Eco-Materials’ stock rockets more than 7-fold after closing Millennium Sapphire deal

Shares of China-based Yulong Eco-Materials Ltd. YECO, +509.94% rocketed more than 7-fold (up 606%) on extremely heavy volume to pace all Nasdaq gainers, after the eco-friendly building products and construction waste management company said it completed the $50 million purchase of the Millennium Sapphire. Volume swelled to 26.9 million shares, compared with the full-day average of about 43,700 shares. The world-renowned gem was acquired with the issuance of 25 million Yulong restricted shares, the company said before Wednesday’s open. Yulong said it is now in the process of selling or spinning off its China businesses so it can devote all of its resources to the Millennium Sapphire business. The company said it plans to relocate its headquarters to New York from Pingdingshan, in China’s Henan province. “We are extremely pleased to have completed the purchase of this world class, under valued asset,” said Chief Executive Hoi Ming Chan. “By spinning off the China businesses, we will divest ourselves of all the China assets and all the debts of the previous business.” The company did not immediately respond to a request for further comment. Yeco shares have now more than tripled over the past 12 months, while the S&P 500 SPX, -0.16% has advanced 9.9%.

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