Glory Star New Media Group Holdings Limited (GSMG) gained in the pre-market after announcing in a press release today that the founder and CEO intend to buy all the company’s common shares. GSMG values at $1, gaining more than 13% compared to Friday’s closing price. The stock closed at $0.88 at the end of the last trading session. The stock volume traded in the previous trading session was around 159.16K shares. The current market cap of the company is about $59.94 million.
GSMG: Letter by Founder and CEO
Glory Star New Media Group Holdings Limited (GSMG) reported in a press release that its Board of Directors had received a preliminary non-binding proposal letter dated March 13, 2022, from Mr. Bing Zhang, the Company’s founder, and CEO.
For $1.27 per ordinary share in a going-private deal, Mr. Zhang expects to buy all of the Glory Star New Media Group Holdings Ltd’s ordinary shares that Mr. Bing Zhang does not already own. As of March 11, 2022, the company’s ordinary shares were trading at a premium of around 44.3 percent. Mr. Bing Zhang owns about 28.9% of the company’s outstanding ordinary shares.
GSMG: Details of Letter by Founder and CEO
To carry out the Proposed Transaction, Mr. Bing Zhang will organize an acquisition entity, including other existing owners of the Glory Star New Media Group and equity investors as consortium members. The acquisition is expected to be financed by a combination of loan and equity capital from the Potential Consortium Members.
Conclusion
Glory Star New Media Group Holdings Limited (GSMG) stock was going through a decline phase, and its stock was consistently trading below $1. This could be a strategy by the founder and CEO, Mr Zhang, to help the company’s stock gain value and meet the NASDAQ listing compliance. According to the compliance, a stock should trade above $1; otherwise, it could affect the continuity of its stock trading on NASDAQ.
