LICN stock plunges to 52-week low, touches $0.05

Published 27/02/2025, 15:32
Updated 27/02/2025, 15:34
LICN stock plunges to 52-week low, touches $0.05

In a stark reflection of market sentiment, Legend China (LICN) stock has plummeted to a 52-week low, trading at a mere $0.05. This significant downturn marks a dramatic shift from the previous year, with the stock experiencing a precipitous 1-year change of -94.25%. Despite the sharp decline, InvestingPro analysis suggests the stock is currently undervalued, with the company maintaining impressive gross margins of ~61% and healthy revenue growth of ~25% over the last twelve months. Investors have watched with concern as LICN shares have steadily declined, eroding nearly all of their value over the past year and leaving the company’s market position highly precarious. The current price level underscores the challenges faced by Legend China in a competitive and rapidly changing market landscape. However, the company maintains strong fundamentals with a P/E ratio of 6.39 and an exceptional current ratio of 17.55, indicating robust financial health. InvestingPro subscribers can access 13 additional key insights about LICN’s valuation and future prospects.

In other recent news, Lichen China Limited has announced a reverse stock split and a corporate name change to Lichen International Limited. The reverse stock split, at a ratio of one-for-two-hundred, aims to increase the market price per share, potentially meeting Nasdaq’s minimum bid price requirement. Additionally, Lichen China has finalized the acquisition of Bondly Enterprises Limited, making it a wholly-owned subsidiary and integrating its advanced technologies into Lichen China’s operations. This strategic acquisition, valued at $5.33 million, is expected to enhance Lichen’s position in AI and technology sectors.

Furthermore, the company has announced a registered direct offering of Class A ordinary shares and pre-funded warrants, aiming to raise approximately $3.4 million. Univest Securities, LLC is the exclusive placement agent for this transaction. In another financial move, Lichen China has agreed to a $2.8 million share sale, involving 20 million Class A ordinary shares at $0.14 per share. This sale is also facilitated by Univest Securities, LLC and is expected to close shortly.

Lastly, Lichen China plans to enhance its AI capabilities by integrating the DeepSeek optimization framework into its proprietary AI model, promising improved efficiency and precision in financial and taxation tasks. This integration is expected to be completed by the end of the second quarter of 2025.

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