Temporary Nasdaq Delisting: “What’s It All About… EHang?”

EHang was back in the news yes­ter­day after gain­ing approval from the Nas­daq to vol­un­tar­i­ly delist its stock on a tem­po­rary basis “in antic­i­pa­tion of an upcom­ing announce­ment con­cern­ing a very sig­nif­i­cant devel­op­ment regard­ing its busi­ness oper­a­tions.”

Spec­u­la­tion since has been sur­pris­ing­ly mut­ed on the net. For not even EHang’s arch super-fan, Robin Bird, is writ­ing about the delist­ing on his web­site or social media.

One pos­si­ble rea­son for this eery silence is once bit­ten twice shy, after the company’s calami­tous 63 per­cent share-price nose-dive on Feb­ru­ary 17th, 2021 after Wolf­pack Research released a scathing, detailed report ques­tion­ing EHang’s busi­ness, refer­ring to it as “a crash and burn stock.”

Yet, this time around, there is a pos­i­tive feel to the tem­po­rary delist­ing news sup­port­ed by a 7.8 per­cent EHang price increase even before the mar­ket opened on Mon­day. In New York, in pre­mar­ket, EHang had gained USD1.34 or was chang­ing hands at USD18.44 per share. Some sug­gest that news may have leaked out about this “very sig­nif­i­cant devel­op­ment regard­ing its busi­ness oper­a­tions” and the com­pa­ny want­ed to nip it in the bud.

claytoncountyregister.com writes, “The tem­po­rary delist­ing of its stock is an unusu­al move, sug­gest­ing that EHang wants to close­ly con­trol the tim­ing and impact of this announce­ment.” EHang has stat­ed it intends to make the “sig­nif­i­cant devel­op­ment” announce­ment and apply to resume trad­ing on Nas­daq by no lat­er than this Fri­day, 5 am ET.

beststocks.com adds, “This unex­pect­ed devel­op­ment has left investors eager­ly await­ing an announce­ment… it is expect­ed to have a sig­nif­i­cant impact on the mar­ket.”

It would be wrong for evtolinsights.com to spec­u­late. The one and only sug­ges­tion being, has the CAAC final­ly grant­ed EHang the full cer­ti­fi­ca­tion green light to begin com­mer­cial oper­a­tions? This would lead to a sub­stan­tial num­ber of 216 AAV orders, help­ing the com­pa­ny to become prof­itable faster than the mar­ket present­ly per­ceives.

It is going to be a nail-bit­ing week for EHang investors.

For more infor­ma­tion

https://www.ehang.com

(Top image: EHang)