On April 29, 2022, after market hours, Global Cord issued a press release entitled “Global Cord Blood Corporation Announces Entry into Cell Therapy Market by Acquiring Cellenkos and Its Products Rights” which discussed Global Cord’s planned acquisition of Cellenkos, Inc (“CLNK”) (a biotechnology research and development company which utilizes umbilical cord blood (“CB”) as the raw material to develop innovative, allogeneic, off-the-shelf, cell based therapeutic products and which has agreements with The University of Texas MD Anderson Cancer Center).
On this news, Global Cord’s stock price fell $0.98 per share, or 28%, to close at $2.45 per share on May 2, 2022, the next trading day.
On May 9, 2022, during market hours, Global Cord announced a major investor in many of Global Cord’s Chinese subsidiaries, Blue Ocean Structure Investment Company Limited (“BVI”), “filed in the Grand Court of the Cayman Islands a notice of petition to wind up in respect of the issuer (the ‘Notice of Petition’). Among other things, the Notice of Petition primarily seeks an order that: (1) the issuer refrain from proceeding with a proposed transaction by which the issuer would acquire Cellenkos, Inc., as described in a Form 6-K filed by the Issuer on April 29, 2022 (the ‘Cellenkos Transaction’); (2) the issuer amend and restate its Memorandum and Articles of Association to eliminate the classification of the Board and to add shareholder protective provisions; and (3) the issuer convene an extraordinary general meeting to propose the removal of the current Board and the appointment of alternative directors proposed by [BVI].”
On this news, Global Cord’s stock price fell $0.22 per share, or 8%, to close at $2.41 per share on May 9, 2022.