On January 24, ReTo Eco-Solutions Inc. (RETO) suffered a heavy loss of 54.89% during the regular trading session. Consequently, the stock made a comeback in the after-hours.
RETO stock traded between a high of $1.0770 and a low of $0.6191 during regular trading. The stock closed the session at $0.7850 with a loss of $0.9550 at 14.77 million shares. Given the steep fall, the stock rebounded in the after-hours to add 4.46%. Hence, the stock was trading at $0.8200 per share in the after-hours on Monday.
The manufacturer and distributor of construction materials, ReTo Eco-Solutions Inc. was founded in 2015. Currently, its 28.14 million outstanding shares trade at a market capitalization of $48.97 million.
What is happening with RETO?
On January 13, the company filed a report of a foreign private issuer with the Securities Exchange Commission. Following the filing, the stock entered an uptrend, making it gain till January 20. It seems the stock entered corrections after that as it reached a high of $2.77 on January 21. The resulting fall continued into January 24’s regular session where the stock suffered a huge blow. During the regular session on Monday, the stock stooped to a 52-week low of $0.6191.
As there is no recent official news or SEC filing, the 52-week low seems to be the cause of the rebound. It seems like the new low presented as a good buying opportunity for investors. Therefore, causing the stock to rebound in the after hours.
Equity Acquisition Agreement
On January 04, the company announced the Equity Acquisition Agreement of its subsidiary, ReTo Technology Development Co., Ltd. ReTo Technology entered the agreement with Hainan REIT Mingde Investment Holding Co., Ltd. and its two individual shareholders among others. As per the agreement, ReTo Technology would acquire 100% equity interest in REIT Mingde. Subsequently, REIT Mingde owns 61.55% of the equity interest of Yale IoT Technology Co., Ltd. Yile IoT which is a high-tech enterprise, focuses on the research, development, and application of Internet of Things technology.
Furthermore, ReTo Technology was to pay RMB 10 million in cash or cash equivalents in consideration, as per the agreement. In addition, the registration of ReTo Technology as the shareholder of REIT Mingde was completed on December 28, 2021.
RETO’s Financial Overview
In the first half of 2021, RETO had a net loss of $0.34 per share on revenue of $2,282,526. Comparatively, the company had a net loss of $0.10 per share on revenue of $3,142,102 in the year-ago period.
