Sino-Global Shipping shares fall after $4.8M stock offering
The Roslyn Center at 1044 Northern Blvd., where Sino-Global Shipping America Ltd. is located. Credit: Google Maps
Shares of Roslyn-based Sino-Global Shipping America Ltd. tumbled Wednesday after the shipping and freight logistics company said it had entered into an agreement to sell $4.8 million of common stock to three institutional investors at a price of $3.18 per share.
Shares of 16-year-old Sino-Global fell 24.5 percent, or $1.08, to close at $3.33 on the Nasdaq Capital Market Wednesday.
The Nasdaq Capital Market has the least stringent listing requirements of the Nasdaq Stock Market’s three tiers.
Wednesday’s volatility comes two days after the company’s shares rose sharply.
On Monday, Sino-Global shares jumped 33.5 percent to $4.70. That rally came after the company reported that in the second quarter ended December 31 it swung to a profit and revenue increased 33.3 percent to $2.1 million versus the year-earlier quarter.
A call to a company spokesman was not immediately returned.
Sino-Global has offices in China, Australia, Canada and Hong Kong.
Atlanta-based FT Global Capital Inc. is acting as the placement agent for the stock offering.
Ken Schachter covers corporate news, including technology and aerospace, and other business topics for Newsday. He has also worked at The Miami Herald and The Jerusalem Post.
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