Weidai Ltd. (WEI) Stock Surged 73.18% Today, Here’s Why

Weidai Ltd. (WEI) stock soared 73.18% in the current-market trading session at the price of $1.92 despite no fundamental reason. The last reported news was its preliminary earnings report for the year 2021.

WEI is a leading provider of auto-backed financial solutions all across China. The firm leverages sophisticated risk management techniques and technology to deliver better outcomes.

WEI Year 2021 Preliminary Results

On 28th March 2022, WEI published its preliminary financial results for the year ended on 31st December 2021. Weidai expects revenue to be from RMB698M to RMB708M. Operations loss has expected to range from RMB744M to RMB754M. The company anticipates a net loss of RMB1,144M to RMB1,154M. The cash and cash equivalents have expected to be from RMB225M to RMB235M for 2021.

WEI Regained NYSE Compliance

On 1st March 2022, WEI announced regaining compliance with NYSE’s listing standard for stock share prices. On 28th February 2022, the company obtained a confirmation letter from the NYSE stating that it had retrieved compliance.

Earlier on 31st August 2021, the company received a letter notifying that it had fallen below NYSE’s price criteria for listing standard. The company needed a minimum ADSs price of US$1.00 for 30 business days consecutively to regain compliance.

WEI Changed ADS Ratio

Previously on 25th January 2022, WEI revealed changing the ratio of its ADS shares. The ratio change became effective as an updated trading price on NYSE on 26th January 2022. This change replaced the actual plan of 3:1 ADS ratio change as reported in the press release on 13th January 2022.

For WEI’s shareholders, the ADS ratio change will be the same as a 1:5 reverse split. Moreover, the company’s ADSs will keep trading on the NYSE with the symbol “WEI”. The ADS ratio change has expected to increase the prices gradually. Although, the company has not guaranteed that the price after the ratio change will be equal to or five times greater than the prior ADS price.

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