Input 2021.02.19 08:01
On the 18th (local time), the stock price of Lee Hang Holdings, listed on the US NASDAQ, ended at $61.19, down 21.28% ($16.54) from the previous day’s closing price ($77.73).
Earlier, Lee Hang’s share price plunged 62.7% on the 16th after Wolfpack Research, a short selling investor, issued a negative report. Wolfpack Research argued that Lee Hang’s drone contract worth 500 billion won with a company called Kunshang in 2019 was fake, and pointed out that the headquarters and factory of Lee Hang did not even have the basic facilities to produce drone taxis.
The day after the crash (17th), after Lee Hang released a press release saying “There are numerous errors in the Wolfback Research report,” the stock price soared by about 60%.
However, after a day, the stock price turned downward again, showing a roller coaster pattern. The stock price on this day is about half of the 12th closing price ($124.09) before the plunge.
Founded in Guangzhou, China in 2014, Lee Hang was the first Chinese drone company to be listed on NASDAQ in 2019 and raised $40 million (about 44.2 billion won). In November of last year, a manned drone taxi was piloted in Yeouido, Seoul. The city of Seoul, which held the event with the Ministry of Land, Infrastructure and Transport at the time, paid 400 million won to purchase a drone taxi in Lee Hang.
According to the Korea Securities Depository, Lee Hang is the ninth and only Chinese company out of the top 10 US stocks held by Korean investors.