Boston, MA 06/07/2013 (wallstreetpr) – China BAK Battery Inc. (NASDAQ:CBAK) (shares traded low by 17.61% to close at $1.17), a Chinese manufacturer of standard and customized lithium ion rechargeable batteries, has finally crashed after rumors turned out be false.
The battery maker’s stock skyrocketed on Wednesday after rumors in the market hinted at a possible supply deal with Kandi Technologies Corp. (NASDAQ:KNDI).
China BAK was rumored to be supplying car batteries for electric sedan, co-developed by Kandi Technologies and Geely Auto, which recently received a green signal from the People’s Republic of China’s Ministry of Industry and Information Technology.
However, the rumors turned out to be wrong, resulting in a steep decline in China BAK Battery’s shares. According to several reports, Kandi Tech clarified that the company has no relationship with China BAK Battery, Inc. (CBAK), and the rumor is absolutely false.
In April, China BAK Battery, in a U.S. SEC filing, announced the termination of the employment of the company’s chief financial officer, Danny Pan, effective immediately. While the company is seeking a new chief financial officer, China BAK Battery’s board of directors appointed Chief Executive Officer Xiangqian Li, to serve as interim chief financial officer, treasurer and secretary of the company.
China BAK Battery makes battery cells that are the principal component of rechargeable batteries
used in smartphones, notebooks, e-bikes, electric vehicles, power tools, UPS, and other portable consumer electronics. The company has manufacturing units located in Shenzhen and Tianjin in China.
China BAK Battery’s stock has been trading in the 52-week range of $0.59 to $3.55.
