China Recycling Energy Corporation Common Stock (NASDAQ: CREG) started the day off on an incredibly strong note as traders pushed the stock toward tremendous gains in the pre-market. However as the market opened, the stock started to tank. Unfortunately, the declines only got worse when the SEC issued a notice to declare that the company’s registration statement has been accepted, pushing the stock into the red. Today, we’ll talk about:
- The registration statement;
- what we’re seeing from CREG as a result;
- and what we’ll be watching for ahead.
SEC Notifies Investors That The Registration Statement From CREG Has Been Accepted
As mentioned above, China Recycling Energy started the day off on an incredibly strong note. However, recent news from the SEC caused the stock to fall into the red. Just minutes ago, the SEC issued a notice to declare that the company’s registration statement has been accepted. The statement was filed on April 25, 2018. Here are the key points from the SEC filing:
- In accordance with Rule 416 under the Securities Act of 1933, as amended (the “Securities Act”), this registration statement also shall register and be deemed to cover any additional shares of Common Stock of the Registrant which may be offered or become issuable to prevent dilution resulting from stock splits, stock dividends, or similar transactions.
- Estimated solely for the purpose of calculation of the registration fee pursuant to Rule 457(c) under the Securities Act based on a per share price of $1.575, the average of the high and low reported sales prices of the Registrant’s Common Stock on the NASDAQ Capital Market on April 23, 2018.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that it’s important to keep a close eye on the news. After all, the news causes moves. In this particular case, the SEC filing shows that the company is considering transactions that may not align with the best interest of investors. So, it’s no surprise to see that the stock is falling hard. At the moment (10:18), CREG is trading at $2.30 per share after a loss of $0.08 per share or 3.36% 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 CREG. In particular, we’re interested in watching for a potential fund raising attempt by the company following the SEC filing. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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