TD Holdings (NASDAQ:GLG) Stock Hits $1 Mark: A Bullish Sign?

Commodities trading service provider in China, TD Holdings (NASDAQ:GLG) on July 16, 2021 announced entering into non-binding letter of intent with Guangdong Jinbochuang Special Purpose Vehicle Co as well as Hunan Jinmeike New Material Co to acquire both for venturing into unmanned logistics and new energy vehicle industry.

The firm will acquire 100 % equity in the two for certain amount of shares of common stock and the management is expecting this to be completed in less than 180 days from Letter of Intent date. The firm will publicly disclose information either through SEC filing or press release. Both the parties have the provision to nullify this unilaterally.

Ms. Renmei Ouyang, the Chief Executive Officer said that the company has focused on large business transactions including supply chain services as well as non-ferrous metals trading, which are related to warehousing and logistics.

Ouyang added that the acquisition is aligned to its growth strategy of improving industrial chain and supporting the ‘Made in China 2025’ vision. She further added that incorporating lightweight new materials as well as trucks into global industry chain as well as leverage experience of the firms in new energy vehicle industry will facilitate optimisation of businesses.

Shares of the company TD Holdings jumped on signing the agreement.

Market Reaction:

On Friday, GLG stock soared 24.40% at $1.01 with more than 201 million shares, compared to its average volume of 3.88 million shares. The stock has moved within a range of $0.9620 – 1.3900 after opening the trade at $1.05. Over the past 52-week, the stock has been trading within a range of $0.7700 – 4.0200.