Newegg Commerce (NEGG) has released an update.
Newegg Commerce Inc.’s majority controlling stockholder, Hangzhou Lianluo, has submitted a reorganization proposal that is pending approval from its shareholders and the Hangzhou Intermediate People’s Court in China. The reorganization raises concerns about potential delisting from the Shenzhen Stock Exchange due to Hangzhou Lianluo’s share price and could result in changes to Newegg’s board of directors. Additionally, Hangzhou Lianluo’s shares in Newegg may be sold to satisfy liquidity needs during the reorganization, posing risks for the company.
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