GreenLand Technologies

Kurta Law is investigating broker recommendations of GreenLand Technologies (NASDAQ: GTEC). These recommendations may have violated securities rules and regulations due to the high-risk nature of this investment. Investors who specified a moderate or conservative risk tolerance and relied on their broker for recommendations may have a case for a securities attorney. Overly risky investments violate FINRA Rule 2111, which states that brokers must only recommend investments that fit their clients’ profiles. Investor profiles include information on risk tolerance, age, and financial goals.  

Investors who have suffered losses should keep reading and contact Kurta Law for a free case evaluation. Contact (866) 600-0098 or email info@kurtalawfirm.com.  

The Offering  

The prospectus dated June 28, 2021, announced that Greenland Technologies would offer 857,844 ordinary shares at a purchase price of $8.16 per share. As of writing, GTEC trades for $2.14 per share.  

About Greenland Technologies Holding Company  

Greenland Technologies is the parent company for Zhongchai Holding, a holding company. Through its subsidiaries, it develops and manufactures transmission products for material-handling machineries in China. It also develops models for robotic cargo carriers, which are expected to be produced in the near future in China.  

Risks Associated with Greenland Investments  

The following risks are disclosed in the Greenland Technologies prospectus. Brokers who recommended this stock should have ensured that investors knew about these risks. The following are just the risks that Kurta Law has chosen to highlight – see the prospectus for the complete list. 

Management Discretion  

Greenland Technologies management will have flexibility when it comes to how the business chooses to spend the proceeds from this offering. Shareholders do not influence this decision and investors may not agree with the choices management makes. Further, the failure of management to spend the funds effectively could have a material adverse effect on the business.  

Uncertain Market  

The prospectus discloses that the offerors know that the active trading market for their shares may not continue. Investors may not be able to share their shares in the future.  

Securities Analysts 

The trading market for these stocks depends somewhat on publications by securities analysts. Without coverage by analysts, share prices will suffer. At the time of the prospectus, Greenland Technologies disclosed that it did not have and may never obtain research coverage from industry analysts.  

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  

Contact Kurta Law today for a free case evaluation – keep in mind that you have a limited time to file a claim. Our attorneys do not collect a fee unless we win your case. If you have any questions, call (877) 600-0098 or email info@kurtalawfirm.com.