Skycorp Solar Group Limited completed a 100% acquisition of Nanjing Cesun Power Co., Ltd. by signing an agreement on April 30 2026 to purchase the remaining 56% equity interest for $20,194,720. The transaction values Nanjing Cesun at an enterprise value of $36,062,000 and is financed through the issuance of 7,983,000 newly issued ordinary shares at an average price of $2.5290 per share, calculated from the 10‑day average closing price between April 17 and April 30 2026.
On May 1 2026 Skycorp also closed a private placement of 1,694,000 Class A ordinary shares at $1.7703 per share, a 30% discount to the 10‑day average closing price. The placement raised $3.0 million and is subject to a six‑month lock‑up period.
The acquisition is a related‑party transaction because CEO Huang Weiqi holds a 20% equity interest in Nanjing Cesun. The board of directors and audit committee approved the deal on April 30 2026. Shares issued to the CEO are Class B and carry a 24‑month lock‑up, while other shares carry a 6‑month lock‑up. A full audit of Nanjing Cesun will be completed within 90 days of closing.
Management emphasized the strategic fit of the deal. “The complete acquisition of Nanjing Cesun represents a pivotal milestone in Skycorp's strategic expansion,” stated Mr. Huang Weiqi, Chief Executive Officer of Skycorp. “By consolidating 100% of Nanjing Cesun, we are directly integrating its robust operations, spanning server equipment, inverter production, photovoltaic power stations, and energy management system, into our renewable energy portfolio.” “These proceeds provide the working capital and financial agility necessary to accelerate business development and execute future strategic initiatives. Crucially, the stringent lock‑up agreements across both the acquisition and the PIPE financing demonstrate a deep, shared commitment among our management, beneficial owners, and new shareholders to drive long‑term value creation for our public investors.”
Skycorp's fiscal 2025 results, released on February 12 2026, showed revenue of $63.31 million, a 26.97% increase from the prior year, but a net loss of $2.21 million versus a net income of $1.17 million in fiscal 2024. The loss was attributed to margin compression and higher operating expenses. The acquisition of Nanjing Cesun, with its diversified product lines, is expected to broaden revenue streams and potentially offset margin pressures by leveraging complementary manufacturing and service capabilities.
Investors viewed the combined acquisition and private placement as a signal of Skycorp's commitment to growth and financial flexibility. The deal positions the company to capitalize on expanding renewable energy markets while providing the capital needed to pursue future initiatives.
The transaction will result in significant shareholder dilution, with the issuance of nearly 9 million shares for the acquisition and an additional 1.7 million shares for the PIPE. However, the strategic alignment and potential synergies are expected to enhance long‑term value for shareholders.
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