MingZhu Logistics Holdings Limited (YGMZ) shares gained 16.81% in after-hours on Tuesday, July 6, 2021, and closed the day at $5.49 per share. Earlier in the morning session, YGMZ’s stock gained 3.07% to close Tuesday’s session at $4.70 per week. YGMZ shares have moved up 4.68% in the past week. Over the past three months, the stock has lost 8.56%, while over the past six months, it has declined 52.14%.
Let’s have a look at its recent news and developments
Acquisition of Zhejiang CheYi Network Technology
On July 6, 2021, MingZhu Logistics Holdings Limited entered into a non-binding memorandum of understanding to acquire the controlling equity interest of Zhejiang CheYi Network Technology Co., Ltd. The acquisition offers MingZhu’s customers additional platform enhancements and directly fits with MingZhu’s acquisition strategy, which includes adding financially accretive, best-of-breed companies and products.
Regaining Nasdaq compliance
On June 29, 2021, MingZhu Logistics Holdings Limited received notification from The Nasdaq Stock Market LLC confirming the Company has regained compliance with the periodic filing requirement for NASDAQ under Listing Rule 5250(c)(1). NASDAQ noted this matter is now closed.
Recent financial results announcement
On June 28, 2021, MingZhu Logistics Holdings Limited released its audited financial results for the full year ended December 31, 2020.
FY 2020 financial highlights
- MingZhu Logistics reported revenue of $18.8 million for the year ended December 31, 2020, compared to $29.4 million for the year ended December 31, 2019.
- Total costs and expenses were $17.4 million for FY 2020 compared to $26.7 million for the year 2019.
- The company’s comprehensive income was $1.5 million and net income of $0.08 per basic and diluted share in FY 2020 compared to $1.5 million and net income of $0.18 per basic and diluted share for the year 2019.
- As of December 31, 2020, the company had an $11.6 million balance of cash and restricted cash with a $5.3 million accounts receivable balance and an $11.4 million other receivables balance.
Closing of Registered Direct Offering
On March 12, 2021, MingZhu Logistics Holdings closed a registered direct offering of an aggregate of 3,333,335 units of its securities with each Unit consisting of (i) one ordinary share of the Company, par value $0.001 per share, and (ii) one warrant to purchase 0.75 ordinary shares at $6.00 per unit for aggregate gross proceeds of $20 million.
The company will get net proceeds of approximately $18 million and intends to use the net proceeds for working capital and general corporate purposes.
MingZhu Logistics agreement with Huawei Logistics
On March 3, 2021, MingZhu Logistics Holdings announced a significant new strategic cooperation with Guangdong Huawei Modern Logistics Co., Ltd. The cooperation agreement will leverage MingZhu’s trucking fleets and logistics expertise to provide a crucial, integrated link to and from Huawei Logistics’ CHINA RAILWAYExpress operation.
Conclusion
The recent acquisition agreement could be the reason behind YGMZ exceptional performance on Tuesday and it can continue its rally in the coming days as well.
