Seco Holdings SECO Stock News

Secoo Holding Ltd – ADR (NASDAQ: SECO) is flying in the market this morning, and for good reason. The company announced that it has received a large investment and entered into a strategic partnership, exciting investors. Here’s what’s going on:

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SECO Stock Is Flying On Investment And Strategic Partnership

In the press release, Seco said that it has entered into a definitive agreement with Qudian. Under the agreement, Qudian will purchase 10,204,082 newly issued Class A ordinary shares of SECO. The total price of the purchase comes to $100,000,003.60, representing a price per share of $9.80.

Once the transaction is complete, Qudian will own about 28.9% of outstanding shares of the stock. Moreover, as part of the agreement, SECO said that the two companies will partner in the online luxury e-commerce business space. Of course, the transaction is subject to customary closing conditions.

In a statement, Mr. Rixue Li, Founder, Chairman and CEO at SECO, had the following to offer:

We believe this strategic partnership will enable us to accelerate growth by building upon both companies’ assets, core expertise and competitive advantages. We will utilize the investment proceeds to further strengthen the supply chain and enhance user satisfaction.

The above statement was followed up by Mr. Min Luo, Founder, Chairman and CEO at Qudian. Here’s what he had to say:

This strategic partnership leverages both companies’ resources, capabilities, industry expertise and market presence, while fostering collaboration in supply chain management, user acquisition and retention, quality appraisals, post-sales services, and financing solutions. Our partnership will bring value to both Secoo and our Wanlimu platform, launched earlier this year, and also establish a good foundation for a better user experience for our customers. We believe this strategic investment in Secoo will fuel opportunities for expansion and success on both platforms.

This News Is Huge

The news released by Seco this morning is massive. First and foremost, a $100 million investment is a massive injection of capital. Not to mention, this injection of capital comes at an incredible premium, suggesting that Qudian sees incredible value in the future of the company.

Also, Qudian is a massive Chinese company that brings years of experience, incredible technologies, and a massive amount of financial backing to the table, suggesting that tremendous growth is ahead. All in all, this makes SECO stock one that’s hard to ignore.

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