Liquidmetal Technologies Inc (OTCMKTS:LQMT) held its annual stockholders meeting on May 18, 2016. The meeting included voting on the matter of increasing the total number of issue shares of the company. LQMT had proposed increasing the number of authorized shares from 700 million to 1,100 million, in regard to closing of a financing transaction, worth $55 million. Originally the investor, Professor Lugee Li, had proposed a $63.4 million financing, out of which $8.4 million was closed on March 10.
Professor Li is currently the chairman and majority stockholder of DongGuan EONTEC Co. Ltd. He had proposed the financing, with regard to a cross-licensing agreement, between the two companies, in March, 2016. However, the remaining $55 million could not be accessed, without an increase in the authorized shares. Now LQMT plans to close the final transaction on August 17, 2016.
Liquidmetal Technologies is considered to be a leading developer of bulk alloys, which tend of offer the advantages of amorphous alloys. These materials tend to retain their random structure, once they solidify. However, despite its position and the uniqueness of its products, LQMT reported 1Q2016 revenues of just $168,000. In addition to this, the company recorded a slight increase in its marketing, administrative and selling expenses, which stood at $2 million, up by $0.1 million from a year ago. Fortunately, the company’s cash position has significantly improved since last year, owing mainly to financing activities. LQMT had cash reserves of $11.3 million, compared to $4.7 million in the prior quarter.
Thomas Steipp, the CEO of Liquidmetal, particularly commented on the ongoing collaborations between his company and EONTEC. He expressed his excitement at the synergies between the two companies, as LQMT plans to grow its global market. At the end of the shareholder meeting the CEO stated that the management was poised at closing the transaction with EONTEC as soon as possible.
Liquidmetal Technologies Inc (OTCMKTS:LQMT) closed at a share price of $0.177, after recording a gain of 10.63% and having a trade volume of 4.53 million, during the May 24 trading session.