SemiLEDs Corporation (NASDAQ:LEDS) shares went up to a booming $8 per share when Dr. Peter Chiou invested in 577,000 shares for $5 a piece. He bought almost 20% of the company’s outstand stock which caused the price to go up 160%.
Additionally, Dr. Chiou plans to subscribe to $1.62 million of SemiLEDs’ 0%-interest convertible notes, due September 29, 2017. Subject to the shareholders’ endorsement at the following yearly meeting, the notes will be convertible to shares worth $1.62 million (dividend) by the change cost.
Furthermore, the speculations are required to be made in three portions. The first, esteemed at $1 million, has, as of now, been wired to the company’s financial balance. The second portion, worth $1.89 million, will be wired by August 15, while the third one of $1.62 million, will be finished by September 29.
Once Dr. Chiou have successfully purchased the shares, he will receive a position in the company’s board. Additionally, he has also agreed to waive any services on the board. While it seems like a legitimate deal, SemiLED remains wary since it is unsure if Dr. Chiou would be able to come up with the funds that are made in the agreement and if the deal will actually be successfully closed.