On Friday the stock of Vu1 Corp. closed the market at exactly half a dollar for a share on about 422,000 traded shares. The share price increase from the previous session was 8.65%. Since the trading activity has increased, maybe traders are expecting the news about VUOC first delivered product any time. There was other good news as well recently, which could probably explain that the stock of the development-stage company is currently worth on the market around 46 times more than its stated book value.
At the end of last month, VUOC announced that it has completed electronics miniaturization of the second generation of its Electron Stimulated LuminescenceTM (ESL) R30 light bulb and will begin shipping the new bulbs to all customers with outstanding orders from March 23, 2011. Unfortunately, the company’s President and CEO only stated that there was “strong consumer interest” towards Vu1 technology, without giving a clue about the approximate number of the received or expected orders. That would have been of much help to traders, because if one assumes that the current market cap is based on the future revenues then the company should make at least $46 million in sales in the coming year.
At the beginning of last month Vu1 closed a private placement for total proceeds of $2.21 million. Eight institutional investors have participated in the offering and have purchased 4.9 million shares of VUOC common stock at a price of $0.45 per share. They also received warrants to buy another 4.9 million shares at an exercise price of $0.60 per share. The company stated that it will use the funds to scale up its manufacturing capabilities and to meet the growing demand for its products.
