Small Cap Losers: ZME, ADVM, RAAS
3:33 pm Friday, July 23rd, 2021
Zhangmen Education Inc – ADR (NYSE: ZME) trades sharply lower alongside peers in the Chinese tutoring space following reports indicating that China is weighing regulations that will ask companies that offer tutoring on school curriculum to become non-profits; under the rules allegedly under consideration, foreign capital would be prohibited from the sector. Co commented that it has not received official notification of the new rules and regulations reported in the press. The stock is down 34% to $6.27.
Adverum Biotechnologies Inc (NASDAQ: ADVM) slumped 23% following a review of data available from its INFINITY trial of ADVM-022 in patients with diabetic macular edema (DME) and the OPTIC trial in patients with wet age-AMD, co stated that the data show marked differences in the safety profile between the two patient populations and between the low vs high doses; after a dose-limiting toxicity not seen before in ocular gene therapy or anti-VEGF treatment was observed at the high dose in patients with DME, co is no longer planning future development for DME. Downgraded to Neutral at Cantor Fitzgerald. At new lows.
Cloopen Group Holding Ltd – ADR (NYSE: RAAS) pulls back to new record lows as Chinese ADRs generally underperform amid regulatory concerns. The stock fell 12% to $4.86. Cloopen Group Holding Limited, through its subsidiaries, provides cloud-based communications solutions in the People’s Republic of China. The company offers a suite of cloud-based communications solutions, which include communications platform as a service solution that provides application programing interfaces and software development kits to embed messaging, voice call, audio and video, instant messaging, and other communications into enterprises’ applications.
