Liberals usually take profits and let the rest pay for their debts. It must be one of their usual tricks.
I don't know but ... https://chinaliberaleducation.gcs-web.com/static-files/048629ae-c34f-44ed-9509-612ba2791926 I asked GPT Does it justify the stock price to go from 8 to 0.2 in one day ? The sharp drop in stock price from $8 to $0.2 in one day likely resulted from the massive dilution caused by this warrant exchange. Here’s why: Understanding the Warrant Exchange & Its Impact Warrant Exchange Mechanism: The company had 320 million warrants, each originally exercisable for 3/4 of an ordinary share. After adjustments (due to a reverse stock split on Dec 24, 2024, and a reset adjustment on Dec 30, 2024), those warrants were collectively exercisable for 240 million new shares. The company agreed to exchange (cancel) the 320M warrants in return for issuing 240M new shares directly to the warrant holders. Increase in Outstanding Shares: Before the exchange, the total outstanding shares were much lower. After issuing 240 million new shares, the total jumped to 269.3 million shares. This means that the previous shareholders saw their ownership significantly diluted because a huge number of new shares entered the market. Dilution Impact on Stock Price: If the market cap (total value of all shares) remained the same, but the share count increased significantly, the price per share naturally drops to reflect the increased supply. Investors also react negatively to dilution because their percentage ownership in the company decreases. If these newly issued shares were quickly sold into the market, it could cause additional downward pressure on the price. Does This Justify an 8 → 0.2 Drop? Yes, a drop of this magnitude is possible because: Extreme Dilution: The number of shares increased massively, likely by 10-20x compared to what was outstanding before. Panic Selling: Shareholders who saw their value diluted might have rushed to sell, further accelerating the price collapse. Low Confidence: The issuance price of $0.60 per share (for the new shares) might have signaled that the true market value was far lower than $8. Key Takeaway This type of transaction is highly dilutive and almost always leads to a stock price crash. If the company had a much lower float (number of shares available for trading) before the exchange, adding 240 million new shares would flood the market, making an extreme price drop very likely.
And good luck filing a class-action lawsuit against a Chinese company LOL. Shit like that is why most US institutional investors wont touch Chinese based companies,especially some little piss ant company that recently had to do a reverse split just to remain Nasdaq compliant. Best to leave stocks like that to the day traders and scalpers.