HIGHER: Akari Therapeutics (AKTX), up 14.3% after it said that its Coversin Phase II trial met its primary endpoint... UTStarcom (UTSI), up 7.6% after the Tonghao Group reported a 9.9% stake in the company... Fate Therapeutics (FATE), up 6.7% after it treated its first patient in the APOLLO study of Fate-NK100... Overstock.com (OSTK), up 3.8% after Morgan Stanley (MS) reported an 11.4% passive stake in the company. LOWER: Cytokinetics (CYTK), down 5% after it said its VITALITY-ALS trial did not meet its primary endpoint.
UTStarcom Holdings announced that the special committee of the company's board has received a notice from Shah Capital Opportunity Fund LP, Himanshu H. Shah, Hong Liang Lu and certain of his affiliates and Tenling Ti to withdraw the preliminary non-binding take-private proposal letter from the Consortium to the board. Shah Capital Opportunity Fund initially made a $2.15/shr offer on March 31st, 2017.
UTStarcom announced that it has dismissed Crowe Horwath and appointed Grant Thornton in China as the company's independent registered public accounting firm effective September 1, 2017. Grant Thornton in China is the Chinese member firm of Grant Thornton International Limited and is one of the leading "full service" accounting firms in China. The company appointed Crowe in February 2017 after GHP Horwath, P.C.'s partners and employees joined Crowe. The company's Audit Committee and Board of Directors participated in and approved this change.
UTStarcom Holdings announced that its board of directors has received a preliminary non-binding proposal letter, dated March 31, 2017, from Shah Capital Opportunity Fund LP, Himanshu H. Shah, Hong Liang Lu and his affiliates and Tenling Ti, to acquire all of the outstanding ordinary shares of the company not owned by the Consortium Members, for $2.15 in cash per ordinary share. The Board has formed a special committee consisting of two independent and disinterested directors, Sean Shao and Xiaoping Li, to consider the proposal. The company cautions its shareholders and others considering trading its securities that the Board has just received the proposal letter and neither the Board nor the Special Committee has had an opportunity to carefully review and evaluate the proposal or make any decision with respect to the company's response to the proposal.
UTStarcom announced that it ceased its relationship with its current auditor, GHP Horwath. The relationship was concluded at the request of GHP as its partners and employees have joined another accounting firm, Crowe Horwath LLP. Both the company and GHP stated that there are no disagreements regarding any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure. The company intends to announce the appointment of a new auditor for fiscal 2016 in the near future.