LightPath Sells China Ops for $4.5M, Completing Western Pivot
LPTH has more than doubled off its 52-week low of $2.91.
Summary
LightPath signed a definitive agreement to sell its China subsidiary for $4.5 million in installments over five years. The divestiture removes all China-based manufacturing, completing a multi-year shift to a fully Western-aligned footprint. The China unit generated about $4.5 million in annual revenue, which will be deconsolidated upon closing. The buyer, led by incumbent local management, will continue supplying LightPath as a third-party vendor, ensuring no disruption to commercial customers. This follows strong Q3 results and a recent $100 million offering, reinforcing the company's strategic pivot toward defense and NDAA-compliant optics. The deal reduces geopolitical risk and strengthens LightPath's position as a trusted supplier for mission-critical applications.
At the time of this announcement, LPTH was trading at $12.03 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $805M. The 52-week trading range was $2.91 to $18.94. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: PR Newswire.