Tantech Holdings

Kurta Law is investigating broker recommendations of Tantech Holdings Ltd (NASDAQ: TANH). These investments were high-risk and may have been unsuitable for many investors. Unsuitable investments violate FINRA Rule 2111, which requires brokers to consider their investor’s risk tolerance. Regulation Best Interest also requires brokers to exercise reasonable care and skill when they make recommendations.

If a broker recommended unsuitable investments to you, you may have a case for a securities lawyer. Call (877) 600-0098 or email info@kurtalawfir.com for a free case evaluation.

About Tantech Holdings Ltd.

According to the prospectus, Tantech Holdings Ltd. develops and manufactures bamboo-based charcoal products for industrial energy applications and household cooking, heating purification, agricultural, and cleaning uses.

The Offering

The prospectus dated December 6, 2021, announced an offering of 21,120,509 shares of common stock for $0.65 per share.

Risks Associated with Tantech Holdings Ltd.

The risks associated with an investment in Tantech Holdings were clearly disclosed in the prospectus. Brokers had access to this information and should have known that this investment was high-risk.

Volatile Stock Prices

The prospectus discloses that the market price of Tantech Holdings’ common shares had been highly volatile. Various factors could affect stock prices, such as:

• Actual or anticipated fluctuations in revenue and other operating results.
• Financial projections the company may provide to the public.
• Securities analysts’ coverage of Tantech Holdings stock.
• Announcements by competitors of significant products or features.
• Threatened or filed lawsuits.

Broad Discretion for Proceeds from Offering

Tantech Holdings retained broad discretion for how they would use the proceeds of the offering. The failure of management to apply these funds effectively could result in financial losses that would have a material effect on the business.

Listing Not in Compliance with NASDAQ Requirements

At the time of the offering, Tantech Holdings was not in compliance with NASDAQ listing requirements. Shares traded on the NASDAQ exchange are required to maintain a minimum price of $1.00 per share.

Uncertainties Surrounding Chinese Laws

Tantech Holdings’ contractual arrangements may violate the foreign access requirements if Chinese laws change.  

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.