GD Culture Group Forms Special Committee to Review Buyout Proposal After 97% Stock Drop

GD Culture Group Limited shares rose on Friday after the company disclosed that its board had formed a special committee to review a preliminary non-binding buyout proposal. The stock had experienced a 97% sell-off earlier this week. Benzinga reported that investors appeared to be seeking a floor for the volatile micro-cap name.

The board of directors of GD Culture Group Limited announced the special committee on Wednesday. It consists of three independent directors: Lei Zhang, Yun Zhang and Shuaiheng Zhang. The committee will evaluate the preliminary non-binding proposal the company received on May 1.

A consortium including Wealthy Concord Limited submitted the proposal. The special committee's formation marks the company's first formal response to the offer. No further details about the proposed transaction have been released.

41%. The broader market backdrop provided a modestly supportive environment for the micro-cap stock's recovery attempt. GD Culture Group Limited remains a thinly traded name with a history of sharp price swings.

Their mandate is limited to evaluating the non-binding offer from the consortium that includes Wealthy Concord Limited. The board has not set a timetable for the committee's work.