Lugee Li Yeung Tak, a director and ten percent owner of Liquidmetal Technologies Inc (OTC:LQMT), sold 179,787,888 shares of common stock on October 10, 2024. The shares were sold at a price of $0.16 each, totaling approximately $28.8 million. Following this transaction, Li retains ownership of 225,212,112 shares indirectly through Liquidmetal Technology Limited, a Hong Kong corporation where he is the sole shareholder, executive officer, and director.
In addition to the sale, Li holds stock options and warrants. These include options for 700,000 shares at an exercise price of $0.13, and 200,000 shares at an exercise price of $0.09, as well as a warrant for 10,066,809 shares at an exercise price of $0.07.
InvestingPro Insights
While Lugee Li Yeung Tak's significant stock sale might raise eyebrows, a closer look at Liquidmetal Technologies Inc's (OTC:LQMT) financials provides additional context. According to InvestingPro data, LQMT's market capitalization stands at $43.85 million, which is relatively small compared to the $28.8 million worth of shares sold by Li.
Despite the sale, InvestingPro Tips reveal that LQMT holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations. These factors suggest a solid financial foundation, which could be reassuring for investors concerned about the company's stability following the large insider sale.
However, it's worth noting that LQMT is not currently profitable, with a negative P/E ratio of -34.67 over the last twelve months as of Q2 2024. This aligns with another InvestingPro Tip indicating that the company does not pay a dividend to shareholders, which is common for companies focusing on growth or those not yet profitable.
Interestingly, LQMT has shown impressive revenue growth, with a 331.25% increase over the last twelve months and a 261.19% quarterly growth in Q2 2024. This rapid expansion could explain the high volatility in the stock price, which is currently at 63.69% of its 52-week high.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and metrics beyond those mentioned here. In fact, there are 9 more InvestingPro Tips available for LQMT, providing a deeper understanding of the company's financial health and market position.
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