Amusement parks operator Golden Heaven tanks after Hindenburg short report
13/11/2023 21:57
** U.S.-listed shares of China-based Golden Heaven Group
Holdings GDHG.O dropped as much as 53.6% to $11.01 in
afternoon trading on Monday after U.S. short-seller Hindenburg
Research says in a post on X, formerly Twitter, that it is short
on GDHG
** Stock last down ~1% at $16.99 in extended trading
** GDHG's CEO has a history of undisclosed fraud allegations
and asset freezes in China - Hindenburg
** Adds GDHG's claimed high-tech parks in China appear to be
"dystopian hellscapes"
** Hindenburg says its investigator visited GDHG's claimed
most-visited property on a Saturday, and found the park was
nearly empty around noon
** GDHG claimed that in 2022, the company hosted 2.41
million guests across its 6 parks, driving $41.8 million in
fiscal 2022 revenue, hardly levels that would justify its ~$1.2
billion market cap as of Friday's close - Hindenburg
** Golden Heaven did not immediately respond to Reuters'
request for a comment
** GDHG debuted on Nasdaq in April this year at an IPO price
of $4
** Since April 12, stock has jumped 493.8%, through Friday's
close
(Reporting by Juveria Tabassum in Bengaluru)
((Juveria.Tabassum@thomsonreuters.com;))