U.S.-based durniture manufacturer and designer Nova Lifestyle Inc NVFY shares were trading higher Monday after a report that the company is selling its Chinese business to Kuka Design Limited.
The deal is said to be worth a purchase price of $8.5 million. In the past week, the furniture manufacturer stock has more than doubled.
The two companies signed a Share Transfer Agreement that relinquished Nova's Mainland China business, and is expected to close on October 30 of this month.
Nova will utilize the proceeds of the sale to continue to expand its marketing, distribution, and e-commerce business in North America, Asia, and Europe. The company is excited about shifting more of its focus on its e-commerce business.
Nova furniture is up 26 percent to $4.57 on Monday, trading on nearly 15x its daily average, with more than 6.6 million shares changing hands to start the week.
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