Shares of commodities trading service provider in China, TD Holdings Inc. (GLG) gained 18.98% to trade at $0.966 in premarket trading at the time of writing. In Thursday’s session, TD Holdings shares gained 0.12 percent to close at $0.81. Within the past 50 days, GLG stock volume has remained at 0.12 million shares, which is lower than volume of 0.81 million shares traded on the day.

In the last week, GLG shares have declined by -2.88%, dropping by -69.59% over the last 12 months. GLG shares have dropped by 42.82% over the past three months, while they have dropped by 58.58% over the previous six months. GLG is currently valued at $73.74 million and its outstanding shares were 93.21 million. GLG stock rose after the company signed letters of intent (LOIs) to acquire two companies.

What is GLG acquiring?

As a provider of commodities trading and supply chain services, TD Holdings operates in China. In its commodities business, GLG buys non-ferrous metal products from upstream suppliers of metals and minerals and sells them to downstream customers. As a supply chain service business, GLG serves primarily as a one-stop resource for commodity trading, warehouse logistics, information, and digital intelligence in upstream and downstream markets.

TD TD Holdings has entered into a non-binding LOI with Guangdong Jinbochuang Special Purpose Vehicle Co., Ltd. (“Jinbochuang”) and Hunan Jinmeike New Material Co., Ltd. (“Jinmeike”) and their shareholders, announced the company in a press release today.

• GLG has signed LOI to purchase both Jinbochuang and Jinmeike for entering the unmanned logistics and new energy vehicle industries.
• According to the agreement, GLG will acquire 100% of the ownership interest in Jinbochuang and Jinmeike in exchange for its common stock.
• As a result of the due diligence required by the Company and the parties’ negotiation, the Company determines how many GLG shares to exchange for the acquisition.
• Assuming satisfactory due diligence and a definitive agreement can be reached, GLG management expects to complete the acquisition within 180 days after signing the LOI.
• Each participant has the option of unilaterally terminating the LOI.
• The GLG will disclose necessary information either through SEC filings or press releases as the transaction proceeds.
• A definitive share exchange agreement needs to be negotiated and executed, along with satisfaction of all conditions negotiated in it, before the deal can close.
• Among the formalities necessary for the transaction to close are also approval by the GLG Board of Directors and Nasdaq of the listing of the shares issued to execute he transaction.

How will the acquisitions be handled by GLG?

Providing the transactions complete successfully, the GLG chain of global operations will support lightweight new materials, applications and lightweight trucks. As a result of leveraging Jinmeike’s expertise in unmanned logistics as well as Jinbochuang’s knowledge of the new energy vehicle industry, TD Holdings (GLG) will be able to maximize its business and operational effectiveness.