EZGO Technologies

Kurta Law is investigating brokers who recommended shares of EZGO Technologies (NASDAQ: EZGO). These shares were extremely high risk and have since been delisted from the stock exchange. Brokers and brokerage firms had an obligation to understand the risks associated with these investments and to clearly communicate those risks to their investors. High-risk investments come with the possibility that investors will lose some or all of their principal investment.  

There are securities rules and regulations in place that are meant to protect investors from unsuitable investment recommendations. Securities attorneys are experts on these rules and can help you recover your losses. Contact our office today for a free case evaluation. Call (877) 600-0098 or email info@kurtalawfirm.com.  

The Offering  

In a prospectus dated September 11, 2023, EZGO Technologies announced an offering of 8,498,125 ordinary shares and 8,498,125 warrants. 

• A prospectus is a document that offerors use to register their securities with the SEC. The prospectus discloses essential information about a company’s financials and the risks associated with its shares.  
• A warrant gives the owner the right, but not the obligation, to buy securities at a certain price by a specified deadline.  

Delisting from the Stock Exchange 

On March 29, 2024, EZGO Technologies received the news that it would be delisted from the NASDAQ stock exchange because it failed to meet the minimum $1 per share listing requirement. At that point, its shares had traded for $0.10 or less for ten consecutive days.  

About EZGO Technologies  

According to the prospectus, EZGO Technologies is a holding company incorporated in the British Virgin Islands. As a holding company, EZGO Technologies does not have any material operations. It conducts operations through contractual agreements with Chinese entities. The prospectus states that EZGO Technologies’ “vision” consisted of short-distance transportation solutions, including e-bicycles and e-tricycles.  

Risks Associated with EZGO Technologies Investments  

EZGO Technologies disclosed the following risks. These are just a few of the risks – see the prospectus for the complete list.  

Risks Related to Warrants  

According to the prospectus, there is no market for the warrants and the company did not expect such a market to develop. 

Research and Reports  

The trading market for ordinary shares depends on research reports by industry analysts. No coverage or unfavorable coverage could hurt share prices.  

Risks Related to Doing Business in China  

The prospectus discusses the uncertainties around the interpretation of Chinese laws. Furthermore, court authorities in China have significant discretion when it comes to implementing and enforcing contractual terms. The Chinese government could also exert considerable authority over how EZGO Technologies conducts business.  

Aegis Capital Corp. Underwriting    

Investors should know that Aegis Capital Corp. served as the underwriter for this offering. Underwriters take on risk in exchange for a fee, which could motivate certain investment banks to underwrite investments that pose too much risk for the average retail investor. Additionally, brokers may have conflicts of interest when they recommend shares that are underwritten by an affiliate of their brokerage firm. 

Kurta Law Can Help  

Our securities attorneys do not collect a fee until we win your case. You can discuss your case with us without paying any fees upfront. If you have any questions, call (877) 600-0098 or email info@kurtalawfirm.com.