GLG Stock Price Increases Over 9% Pre-Market: Why It Happened

By Amit Chowdhry ● Mar 17, 2021
  • The stock price of TD Holdings, Inc. (Nasdaq: GLG) increased by over 9% pre-market. This is why it happened.

The stock price of TD Holdings, Inc. (Nasdaq: GLG) – a commodities trading service provider in China – increased by over 9% pre-market. Investors were responding to TD Holdings announcing that the company and Tongdow E-Trade Limited, a wholly-owned subsidiary of the company entered into a letter of intent with Chenzhou Dingmei Silver Co., Ltd. for acquiring the ownership of a molybdenum copper ore in Kazakhstan.

Pursuant to the LOI, Chenzhou Dingmei is going to transfer 100% of the copper ore mine and 100% of the equity ownership of East Kazakhstan Group Company to GLG and Tongdow E-Trade for an aggregate consideration of RMB 98 million paid in shares and cash. And the LOI also provides for the further investment of RMB 80 million by the Company for the construction of facilities and operations of the mine.

Molybdenum copper often are metal ores with rare precious metals like raw silver selenium rhenium tellurium. Molybdenum coppers are indispensable materials widely used in aerospace and military industries.

The completion of the transaction is subject to due diligence investigations by the relevant parties, the negotiation and execution of a definitive share exchange agreement, satisfaction of the conditions negotiated therein including the approval of the company’s Board of Directors and shareholders, approval by NASDAQ of the listing of shares issued in the transaction, and the satisfaction of other customary closing conditions. And there can be no assurance that a definitive agreement will be entered into or that the proposed transaction will be consummated. 

KEY QUOTE:

“The planned acquisition of the molybdenum copper ore mine in Kazakhstan signals the start of our scouting efforts for upstream resources in ore assets. The Company will advance its strategic investments in commodities-related oil and ore resources, with its planned collaboration with Chenzhou Dingmei serving as its first move into the ore mine resource field in Kazakhstan.”

— Ms. Renmei Ouyang, the Chief Executive Officer

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.