Liquidmetal Technologies Inc (OTCBB:LQMT) has always been among the top penny stocks but over the past year it has really transformed into a leader on the exchange exploding off its single digit lows to recent highs near $0.40 LQMT is among the top most 10 traded stocks on the entire exchange.
In November of last year Chinese amorphous alloys Company Eontec Co Ltd took a controlling 46 percent stake in LQMT with Eontec CEO Li Yangde taking over as LQMT CEO who stated at the time “I believe 2017 will mark the beginning of a golden era of the amorphous metals industry. Eontec aims to be a respected company in the world.”
Liquidmetal Technologies Inc (OTCBB:LQMT) used to be a $20 big board stock with a billion dollar market valuation. Unfortunately the product was not yet ready for market and after a string of bad management decisions LQMT ended up on the bb’s. The shell started as a Caltech research project in the early 90’s that was eventually IPO’d on the NASDAQ in 2002.
Liquidmetal alloys contain atoms of significantly different sizes that form a dense mix. It behaves more like glass in the sense that its viscosity drops gradually with increased temperature and retains its form and amorphous properties even after being heat-formed.
Liquidmetal alloys combine a number of desirable material features, including high tensile strength, excellent corrosion resistance, very high coefficient of restitution and excellent anti-wearing characteristics. These unique properties means liquidmetal can be injection-molded into extraordinary precise shapes similar to a plastic, while overcoming the crystalline weakness and necessary machining inherent in other metals. Liquidmetal has significant potential in a number of industries including aerospace, military, auto, watches, and cutlery to name a few. LQMT controls the intellectual property rights with more than 63 U.S. patents.
In 2010 LQMT entered into a license transaction with Apple Inc. pursuant to which, for a one-time licensing fee of $20 million, they granted to Apple a perpetual, worldwide, fully-paid, exclusive license to commercialize all of the company’s intellectual property in the field of consumer electronic products. The Apple transaction obviously marked a huge milestone for LQMT which used the proceeds to pay off some of their outstanding debt. It was this news that was the catalyst for the run to $1.75.
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On October 27 LQMT announced it has finalized the additional closing pursuant to its previously disclosed Securities Purchase Agreement, dated March 10, 2016, with Liquidmetal Technology Limited, a Hong Kong company owned by Professor Lugee Li.
At the additional closing, the Company issued and sold to Investor an aggregate of 300,000,000 shares of Company’s common stock for an aggregate purchase price of $55,000,000, comprised of 200,000,000 shares at $0.15 per share and 100,000,000 shares at $0.25 per share. As a result of the additional closing, Investor has completed its entire investment into the Company in the aggregate amount of $63.4 million as contemplated by the Securities Purchase Agreement.
This effectively gives Eontec a controlling 46 percent stake in LQMT and is expected to greatly benefit both Companies. LQMT already has 128 patents in the United States as well as a sales network and brand equity which should help Eontec realize its global expansion plans.
“Our investment in LQMT is complete and we can now fully incorporate EONTEC’s capabilities with LQMT’s focus on production of high-performance parts, allowing LQMT to address a broad range of market opportunities from automotive, medical and industrial customers. I am truly excited for the future and look forward to the possibilities,” said Professor Li.
In January LQMT entered into an agreement for the purchase of an approximately 41,000-square-foot building located in Lake Forest, California for approximately $7.8M. The Company expects to close the property purchase on February 17, 2017.
Professor Li. said “We are very excited about the purchase of our new corporate office and manufacturing facility. The new facility will allow us to expand our manufacturing capabilities in line with our overall strategy to prepare the Company to be the global leader in amorphous alloy production”
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Currently trading at a $330 million market valuation LQMT has $45 million in cash on the books and has been moving up fast since Professor Li of Chinese amorphous alloys Company Eontec Co Ltd took a controlling 46 percent stake in LQMT and became the CEO. This is a game changer for LQMT who was losing money for years; the Company is moving into a new $7.8 million office and manufacturing facility in Lake Forest, California and with an established player such as Professor Li and Eontec behind it the sky is the limit. Clearly Professor Li has big plans and is already potential opportunities in automotive, healthcare and aerospace for LQMT amorphous alloys. We will be updating on LQMT when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with LQMT.
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Disclosure: we hold no position in LQMT either long or short and we have not been compensated for this article.