Legend China's (LICN) stock has hit a new 52-week low, dropping to $0.14, as the company faces a challenging period marked by a significant downturn in its market valuation. Despite the price decline, InvestingPro data shows the company maintains strong fundamentals with a "GREAT" financial health score, impressive gross margins of ~61%, and healthy liquidity with a current ratio of 17.55. This latest price level reflects a stark contrast to the stock's performance over the past year, with LICN experiencing a precipitous 1-year change of -91.31%. While technical indicators suggest the stock is currently oversold, the company maintains solid operational performance with 25% revenue growth and trades at a P/E ratio of 6.4. InvestingPro subscribers have access to 14 additional key insights about LICN's valuation and growth prospects.
In other recent news, Lichen China Limited has announced its intention to raise approximately $2.8 million in gross proceeds via a registered direct offering. The financial and taxation service provider will sell 20 million Class A ordinary shares, or alternatively, pre-funded warrants, each at a price of $0.14. The closing of this transaction is anticipated to occur soon, subject to customary conditions being met. Univest Securities, LLC has been named as the sole placement agent for the offering.
According to data from InvestingPro, Lichen China Limited maintains strong financial fundamentals, boasting a commendable gross profit margin of 61% and a healthy current ratio of 17.55x. The same source indicates robust revenue growth of 25% for the company in the last twelve months, suggesting the firm is currently undervalued.
Investors are reminded that the offering is only valid in jurisdictions where it is lawful. They are also advised to review factors that may affect Lichen China's future results in its registration statement and other SEC filings. This news article reflects recent developments and does not contain forward-looking statements or predictions.
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