China Lending Corp (NASDAQ: CLDC) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced a new partnership, exciting investors who are sending the stock on a run for the top. Today, we’ll talk about:
- The partnership;
- what we’re seeing from CLDC stock as a result; and
- what we’ll be watching for ahead.
CLDC Heads Up On Partnership
As mentioned above, China Lending Corporation is having an incredibly strong start to the trading session in the pre-market hours this morning after announcing a partnership. In a press release issued early this morning, the company said that it has entered into a strategic cooperation agreement with Zhejiang Lixin Holding, a financial service company that focuses on leasing, factoring, funding, financing guarantee and supply chain management services.
According to the agreement, Lixin will make full use of its resources in assisting CLDC through the revitalization of its business. This will be done through possible reorganization restructuring and the exploration of potential merger and acquisition opportunities. The partnership also aims to help the company upgrade its product portfolio to inculd new micro-financing options that are currently in demand. In a statement, Ms. Jingping Li, Chairwoman and CEO at CLDC, had the following to offer:
We are excited about the opportunity to have Lixin as our new exclusive strategic partner as we try to right the ship for our micro lending business that has been struggling in recent quarters due to changing market conditions and financial difficulties with some customers. We look forward to developing this partnership in the coming months.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of China Lending Corporation, the news proved to be overwhelmingly positive. With the assistance of Lixin, the company is working to turnaround and start providing further value to its shareholders. So, it comes as no surprise that excited investors are sending the stock on a run for the top this morning. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:48), CLDC is trading at $1.65 per share after a gain of $0.85 per share or 106.22% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on CLDC. In particular, we’re interested in following the story surrounding the company’s work to reorganize and restructure. We’re also interested in seeing if an acquisition proves to be on the horizons. Nonetheless, we’ll continue to keep a close eye on the news and bring it to you as it breaks!
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