LightPath to sell China subsidiary to management-owned buyer for $4.5 million
On July 23, 2026, LightPath agreed to sell 100% of its China subsidiary, LightPath (Zhenjiang) Optical Instrumentation Co., Ltd., to Hengtu Optical Technology Co., Ltd., a company owned by Leo Zheng and certain current management team members. The cash price is $4.5 million, paid over five years, and the company said the China operation generated about $4.5 million a year of third-party revenue in fiscal 2025 and 2026 (preliminary) that will leave consolidated revenue at closing.
Key points
- Purchase price of $4.5 million, payable in full no later than the fifth anniversary of closing, with at least $500,000 per year plus interest of 4% of each installment's principal.
- About $4.5 million of average annual third-party revenue from the China operation (fiscal 2025 and 2026, preliminary) will no longer be consolidated after closing.
- The purchaser will supply LightPath products during a five-year Exclusive Supply Term at cost plus 10%, rising 5 points per $1 million of principal paid, to a fixed cost plus 30%.
- Closing is expected in the coming weeks, subject to customary closing conditions; the filing does not give profit or EPS effects.
The filing
Written by AI on Nov 9, 2026, 8:29 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on July 23, 2026.
Briefs are written by AI from the filing text and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the AI's reading of the filing for shareholders, not a price forecast. Not investment advice.