TD Holdings Inc. (NASDAQ:GLG) Stock Pulls Back From The Recent High: A Good Opportunity?
TD Holdings Inc. (NASDAQ:GLG) dropped 10% on profit-booking but up 22% for the week. Last week, the company announced the signing of a non-binding letter of intent with Guangdong Jinbochuang Special Purpose Vehicle Co. Ltd and Hunan Jinmeike New Materials Co Ltd. for the acquisition of both Jinmeike and Jonbochuang to foray into the new energy vehicle and unmanned logistics industry.
According to the LOI, TD Holdings will acquire a 100% stake in Jinmeike and Jinbichuang in exchange for its common stock shares to be ascertained after due diligence and negotiations. The company’s management expects to close the acquisition in 2H 2021 subject to satisfactory due diligence and the parties entering a definitive agreement.
Notably, any party subject to the LOI may decide to terminate the LOI individually. As more engagements continue, the company will disclose relevant details deemed appropriate through SEC filings or press releases. TD Holdings CEO Renmel Ouyang said the planned acquisition is in line with the company’s growth strategy and corresponds with the Made in China 2025 national strategy of producing lightweight vehicles.
Market Reaction:
On Wednesday, GLG stock fell 10% at $1 with more than 4.11 million shares, compared to its average volume of 4.29 million shares. The stock has moved within a range of $0.9500 – 1.0800 after opening the trade at $1.03. Over the past 52-week, the stock has been trading within a range of $0.7700 – 4.0200.
