Shares of ZOOM Technologies, Inc. (ZOOM) surged higher this morning, following an 8K- filing that discloses acquisition of Celestial Digitial Entertainment (Apple Inc. (AAPL) vendor).
“On December 20, 2010, ZOOM executed a share exchange agreement to acquire 100% of the shares of Celestial Digital Entertainment [CDE], a mobile platform video game development company based in Hong Kong…The consideration paid for CDE will be $1.8 mln worth of the co’s common stock at $3.75/share, or 484.8K shares of common stock. Co expects to close the Acquisition on or about January 3, 2011. CDE primarily focuses on development of video games and applications for mobile phones and mobile platforms. CDE has developed over 40 titles for the Apple iPhone and is one of the largest developer of iPhone apps in Asia.” [emphasis added]
ZOOM currently trades below its 50-day moving average of $3.93 and below its 200-day moving average of $5.15. Shares are seeing significant volume; mid-way through the session ZOOM shares have already traded 420,000 shares, well above the daily average volume of 160,000 shares. Day’s range: $3.67 – $4.18.
At last check, ZOOM Technologies was up 16 cents, or 4.32%, to $3.86.
Disclosure: No Position