UQM Technologies Inc. (NYSE:UQM) Keeps Surging Before the Securities Offering

[[tagnumber 0]]Shares of UQM Technologies Inc. (NYSE:UQM) surged another 40% in the pre–market today after the company announced the 10–year Chinese deal yesterday. Earlier this month, it became also clear that UQM will need to raise $50 million on the stock and/or debt market in order to finance the expansion of its production to China.[[tagnumber 1]] [[tagnumber 0]][[tagnumber 3]][[tagnumber 1]] [[tagnumber 0]]UQM stock price more than doubled during the last trading session on Monday, closing at $1.30 for a share on a record trading volume of over 1.3 million shares. The stock has gained even more in the pre–market today, thus it looks like the rally can continue.[[tagnumber 1]] [[tagnumber 0]] UQM is a manufacturer of electric motors and generators for the truck, bus, marine and other relevant industries. In the last reported quarter, the company‘s sales and gross profit margin[[tagnumber 1]] [[tagnumber 0]][[tagnumber 10]] decreased due to low oil prices, yet the new deal announced yesterday could boost operational performance this year already.[[tagnumber 1]] [[tagnumber 0]]As stated in UQM 8–K filing, the company has signed a 10–year Supply Agreement with a bus manufacturing company based in Beijing. According to the terms, the Chinese company has agreed to purchase all of its needed electric motors and controllers from UQM, whereby the agreement also provides for a specified price per product as well as for a quantity discount.[[tagnumber 1]] [[tagnumber 0]] The first purchase order has already been placed and it is for 3,000 units. UQM says also it plans to move the production to China after 2017. That expansion will require additional capital, which the company plans to raise in the form of equity or debt as seen in its previous SEC filings.[[tagnumber 1]] [[tagnumber 0]] In September, shareholders approved the increase of the number of authorized shares by 25 million to 75 million. Shortly after that, the company filed a registration statement for securities that it will offer on a continuous basis and at prevailing market prices.[[tagnumber 1]] [[tagnumber 0]]The statement covers both equity and debt securities as well as warrants and units and the maximum offering price is set at $50 million. Though the cash is obviously needed, investors will consider that this offering will constitute significant ownership dilution, even if UQM share price climbs higher this week.[[tagnumber 1]] [[tagnumber 20]] [[tagnumber 1]]