Planet Green Holdings Stock Rose 331 Percent Fueled by 50-Million Acquisition of 17.9 Blue Gem
By Glenford S. Robinson
Talk about a hyperbolic launch into space, Planet Green Holdings Corp. (NYSE: PLAG) did just that with its climactic rise into the stratosphere of 331% on Friday, launching from a day’s low of $2.85 to $11.51, with a trading volume of about 5.8 million shares as of 10:18 a.m. ET, compared with a 65-day average volume of 60,378.
So, what has caused such an amazing run? Well, it all comes down to the press release the company released on October 16, 2018. According to Benzinga, another reason for the climactic rise of PLAG is that Yulong Eco-Materials Ltd. (NASDAQ: YECO) rose more than 600 percent this past week after the company announced a $50-million acquisition deal for the millennium Sapphire, a 17.9 blue gem that was recently appraised at a value between $60 million and $90 million.
As a result of this deal, Yulong said it has decided to begin the process of spinning off its China business by moving its headquarters to New York, so the company can focus on its gemstone business. In addition, this Yulong news seemed to have drawn an increased amounts of trading volume into other U.S.-listed Chinese stocks, such as TDH Holdings (NASDAQ:PETZ), which rose 40.9 percent.
The press release stated that PLAG closed a private placement transaction deal with Yimin Jin, the Company’s chief strategy officer and director, and Hongxiang Yu, the company’s chairman.
The company received $10 million in exchange for 2.4 million shares of the company’s common stock, which represents a purchase price of approximately $4.25 per share. It was at the Company’s 2018 annual shareholders meeting that the transaction received approval.
Trading of the company’s stock (PLAG) is currently halted due to pending news and the anticipation of extremely high volatility at the time of writing this article (1:00 pm-2:41pm, ET; Friday, October 18, 2018.
Anyone wishing to trade this dangerous stock should consult with his or her own investment advisor.
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