Shares of Ridgecrest PLC (LON: RDGC) fell 33.3% after the company was readmitted to trading on the LSE’s AIM market after being suspended on January 21st due to delays in settling share transactions.
The company, which transitioned into a cash shell on January 5, 2021, after selling its operating businesses and changing its trading name from Nakama Group to Ridgecrest Plc, saw its share price rally to over 3.5p on January 28, 2021.
Ridgecrest’s management team claimed that they did not know why its stock was rising so much after the transition. The settlement of share transactions continued during the suspension period leading to today’s readmission to trading.
The sharp rally in the company’s shares formed a parabolic rally, usually followed by a selloff, which took place just before the shares were suspended from trading.
Before the suspension, Ridgecrest shares rallied almost 200% despite the company’s raising over £2.7 million on January 20, just as the parabolic rally kicked off.
It will be interesting to see how the shares trade over the coming weeks.
Ridgecrest share price.
Ridgecrest shares crashed 33.33% lower to trade at 1.50p after dropping from its last closing price of 2.25p.
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