During the regular trading session on Thursday, REDU went down by 2.28% at 233.03K shares. Soon after the stock closed the session at $0.4681, it saw a reversal and entered green in the after hours. Consequently, the stock was trading at $0.4990 apiece in the after hours.
Founded in 2007, the after-school English teaching and tutoring services provider, RISE Education Cayman Ltd. is based in China. Currently, its 56.48 million outstanding shares trade at a market capitalization of $27.01 million.
REDU Stock Movements
After losing for a few days, the stock made a comeback in the after-hours on Thursday. No recent developments or news from the company are responsible for the recovery of the stock.
In the past five days, REDU stock has subtracted 6.38% while losing 19.25% last month. Moreover, the stock stands at a year-to-date loss of 5.40% while it has lost a huge 92.21% last year.
REDU’s Sale Completion
On December 30, the company announced that it has completed the previously announced sale transaction. As per the sale, REDU has sold all of its equity interests in Rise (Tianjin) Education Information Consulting Co., LTD., RISE Education International Limited and Rise IP (Cayman) Limited. Hence, the company has sold all of its assets through its subsidiaries. The details of the sale are as follows:
- On December 28, 2021, equity interest in Rise (Tianjin) Education Information Consulting Co., Ltd. were sold to Wuhan Xinsili Culture Development Co., Ltd.
- On December 30, 2021, equity interests in RISE Education International Limited and Rise IP (Cayman) Limited were sold to Bain Capital Rise Education IV Cayman Limited.
In addition, the settlement with the lenders of the facilities agreement (March 18, 2021) of the term and revolving facilities of US$80,000,000 was also completed on December 30. Subsequently, all interests in the Edge business services (Hong Kong and Singapore) for students who plan to study abroad have been transferred to a nominee by the Lenders.
What happened before?
Previously, the company held an extraordinary general meeting of shareholders on Thursday, December 23, 2021. The purpose of this extraordinary meeting was the consideration and approval of the sale. Hence, the sale was approved through a special resolution at the extraordinary general meeting.