Yulong Eco-Materials explodes by 950% after pivoting to gemstones

Markets Insider

• Yulong Eco-Materials, a tiny Chinese manufacturer of eco-friendly building products, announced Wednesday it had completed the acquisition of a gemstone for $50 million.
• The company is in the process of selling its China business, and plans to relocate its headquarters to New York this month, devoting all its resources to its new business.
• Shares exploded nearly 1,000% following the news.
• Watch Yulong trade in real time here.

Yulong Eco-Materials, a tiny Chinese manufacturer of eco-friendly building products, rallied as much as 950% on Wednesday after the company acquired a gemstone for $50 million. 

Yulong announced Wednesday that it had completed the acquisition of the Millennium Sapphire, a 17.9 kilogram blue gem that is widely considered an icon in world of art and gems.

“We are extremely pleased to have completed the purchase of this undervalued world class asset for $50 million,” CEO Hoi Ming Chan said in a statement.

“The most recent appraisal for the MS (September, 2018) was $60 to $90 million. World wide news headlines of the then unnamed rough sapphire purported the value between $90 to $500 million in 1996 when it was discovered.”

Yulong said in August that it signed a sale and purchase Agreement to acquire the Millennium Sapphire via the issuance of 25 million restricted shares valued at $2.00 per share. Yulong’s shareholders voted on September 3 to approve the acquisition along with changing the name of the corporation to Millennium Enterprises Limited.

The company said it’s in the process of selling and spinning off its China business, and plans to relocate its headquarters to New York this month, devoting all its resources to the Millennium Sapphire business.

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