Why Golden Heaven Group Stock Tanked Today

Golden Heaven Group Holdings Ltd. GDHG shares traded lower on Thursday after the company announced that it intends to enter into an operating lease framework agreement with a top-tier Chinese amusement group.

What To Know: The Chinese amusement group has a powerful presence in the nation's amusement park industry which Golden Heaven seeks to leverage in order to improve its market position and achieve its strategic business expansion objectives. 

It is anticipated that the group's theme park in Wuhan, Hubei Province will become the pilot leased park to Golden Heaven.

Jin Qiong, the CEO and Chairman of Golden Heaven, stated, "We are thrilled to collaborate with an established player in the amusement park business. We anticipate that the proposed Agreement we are negotiating will assist us in our journey for market expansion in China and believe it may pave the way for more strategic partnerships in the near future."

"By drawing on the strengths of our partner, who we understand has a market base in many large cities in China, we hope to accelerate our expansion and elevate our guest experiences. We believe that the cooperation is in our long-term interests for building brand recognition, sustaining our competitiveness, and creating value for our shareholders."

Shares of the stock fell nearly 90% on Thursday, with trading being halted and resuming twice. The stock sold off on unusually high volume as well. According to Benzinga Pro, the stock experienced above average trading volume of 6.08 million shares, compared to its average volume of 376,157.

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GDHG Price Action: Shares of GDHG closed down 89% at $2.32 at the time of publication, according to Benzinga Pro. 

Image by Harut Movsisyan from Pixabay