Chijet Motor Company Cancels Shares After Acquisition Setback

An update from Chijet Motor Company ( (CJET) ) is now available.

On April 28, 2025, Chijet Motor Company, Inc. completed a transaction involving the issuance of 23,255,814 Class A ordinary shares to acquire an 80% equity interest in Too Express Group Inc. However, due to the company’s negative shareholder equity as of June 30, 2025, these shares were forfeited, retired, and canceled on August 1, 2025, as per a Future Rights Agreement. This development necessitates further negotiations with the original sellers regarding the return of the equity interests, impacting the company’s strategic acquisition plans and potentially affecting its market positioning.

Spark’s Take on CJET Stock

According to Spark, TipRanks’ AI Analyst, CJET is a Underperform.

Chijet Motor Company is facing severe financial and operational challenges, with negative profitability, high leverage, and liquidity issues. The bearish technical indicators and negative market reaction to earnings results further exacerbate the risks. The company’s low valuation metrics reflect its unprofitability and lack of dividend appeal, contributing to an overall weak stock score.

To see Spark’s full report on CJET stock, click here.

More about Chijet Motor Company

Chijet Motor Company, Inc. operates in the automotive industry, focusing on the production and sale of motor vehicles. The company is based in Yantai, Shandong, China, and is involved in strategic acquisitions to enhance its market position.

Average Trading Volume: 23,398

Technical Sentiment Signal: Hold

Current Market Cap: $80.31M

See more insights into CJET stock on TipRanks’ Stock Analysis page.