The latest: Autonomous aerial vehicle (AAV) maker EHang Holdings Ltd. (EH.US) said on Monday that the Nasdaq agreed to temporarily suspend trading in its American depositary shares (ADSs) until as late as Oct. 13 pending its announcement of a “very significant development” for the company.
Looking up: The company has largely completed development of its first AAV model and has delivered some small trial orders to customers. But the product needs regulatory approval before anyone will place the large orders EHang needs to become profitable. The upcoming major announcement suggests EHang may have good news about the product’s regulatory approval.
Take Note: It is very rare for a listed company to ask for a suspension of its shares on the Nasdaq, which may arouse investor suspicion.
Digging Deeper: EHang is one of several global companies developing small, self-piloted aerial vehicles, mostly used for tourism and delivering goods. The company has made several big strategic moves recently, starting in July when a group owned by South Korean music producer Lee Soo Man agreed to invest $23 million through a private placement. Late last month, it also announced a strategic investment in lithium battery maker Shenzhen Inx Technology Co. Ltd. It has also said its AAVs are very close to receiving approval from China’s aviation regulator.
Market Reaction: EHang’s shares traded at $17.10 before the suspension, near the upper end of their 52-week range.
Translation by A. Au
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