The world’s oldest form of medicine, Traditional Chinese Medicine while still being considered unconventional, has been growing immensely lately. With acceptance even by Western doctors in renowned hospitals, the industry is continuing its expansion.
One of the trending names in the industry was China SXT Pharmaceuticals Inc. (SXTC) on March 29, 2022. The traditional Chinese medicine pieces (TCMP) products company witnessed a huge uptick on Tuesday. The stock surged up in the regular session at a super active volume as investors seemed to be flocking towards it while there was no news from the company. Ultimately, the gain was followed by corrections in the after-hours, causing the stock to enter red in order to shed its gains. The latest news from the company date back to March 14 while the most recent SEC filing was on March 24.
During the regular trading session, SXTC increased by a huge 45.40% at a volume of 217.75 million shares. The stock closed the session at $0.2937 to plunge down to $0.2808 in the after hours. Hence, the stock lost 4.39% to corrections in the after hours.
Why the Upsurge?
Apparently, there is no company-specific news since the last securities purchase agreement was announced on March 14. Thus, the latest upsurge seems to be indicating investors’ interest in the stock due to external factors. While social media discussions are one aspect the stock’s low price might have been a reason as well. The interest in the stock seems to have been garnered while much is happening for the company and the wider industry alike. The company is currently working on regaining compliance with Nasdaq’s minimum bid requirement rule while Chinese and U.S. regulators are working towards the ongoing audit issues. Thus, China’s ban on foreign inspection of working papers from local accounting firms and the U.S.’ requirement of audit of Chinese audited forms for China-based companies finally seem to be moving towards a conclusion.
SXTC Company Developments
The company recently entered into a securities purchase agreement. The latest securities purchase agreement commenced on March 14 and closed on March 16, 2022. It included the issuance of a convertible promissory note in the original principal amount of $2,804,848.00 to Streeterville Capital, LLC.
Furthermore, SXTC previously closed a $4.1 million follow-on underwritten offering along with the exercise of over-allotment on January 20. The offering equated to 22,777,774 of the company’s ordinary shares.
Additionally, the company has until June 13, 2022, to regain compliance with Nasdaq’s minimum bid requirement of $1.00 or above.