Missfresh Ltd (NASDAQ:MF) shares are trading higher on very high volume. The company entered into a share transfer agreement with Freshking Limited on Monday.
What Happened: Missfresh said its board approved a share transfer agreement in which the company will transfer all of its shares to Freshking in exchange for a total consideration of $1 in cash.
The news comes after Missfresh shares surged more than 280% on Friday after the company announced that it entered into share purchase agreements for financing and business acquisition. Under the financing agreements, investors agreed to provide $27 million in exchange for 88.1% of the company's outstanding shares.
Missfresh also agreed to purchase Mejoy Infinite for $12 million in cash. The acquisition is expected to close within 45 business days of the announcement. Upon closing, the company said it will start focusing on customized digital marketing solutions and services.
"We believe this acquisition could take full advantage of our extensive market know-how on the online marketing and ecommerce industry," said chairman and CEO Zheng Xu.
Misssfresh has an average session volume of about 2.3 million, according to Benzinga Pro. Monday's trading volume has already exceeded 14.2 million.
See Also: US Stocks Eye Rebound After Big Earnings, But Inflation Data Looms: Analyst Says 3 Factors Can Take S&P 500 Past 4,800
MF Price Action: Missfresh shares were up 53% at $3.03 at the time of publication, according to Benzinga Pro.
Photo: Lorenzo Cafaro from Pixabay.