The Law Offices of Frank R. Cruz Announces Investigation of RLX Technology Inc. (RLX) on Behalf of Investors
LOS ANGELES--(BUSINESS WIRE)--Jun 11, 2021--
The Law Offices of Frank R. Cruz announces an investigation of RLX Technology Inc. (“RLX” or the “Company”) (NYSE: RLX ) on behalf of investors concerning the Company’s possible violations of federal securities laws.
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RLX purports to be the “No. 1 branded e-vapor company in China,” which the Company claims is its “largest potential market.”
In January 2021, RLX conducted its initial public offering (the “IPO”), selling approximately 116.5 million American Depositary Shares (“ADSs” or “shares”) at $12 per ADS, raising approximately $1.4 billion in gross proceeds.
On March 22, 2021, China’s Ministry of Industry and Information Technology posted draft regulations confirming that e-cigarettes and new tobacco products would be regulated similar to traditional tobacco offerings.
On this news, RLX’s share price fell $9.31, or 48%, to close at $10.15 per share on March 22, 2021, thereby injuring investors.
Then, on June 2, 2021, the Company announced its first quarter 2021 financial results, reporting only a 48% increase in net revenues quarter over quarter, and second quarter guidance suggesting that its gross margin would “remain steady.”
On this news, RLX’s share price fell $0.97, or nearly 9%, to close at $9.90 per share on June 4, 2021, thereby damaging investors further. The Company’s shares have traded as low as $7.89 per ADS, or 32% below the IPO price.
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If you purchased RLX Technology securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to firstname.lastname@example.org, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
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CONTACT: The Law Offices of Frank R. Cruz, Los Angeles
Frank R. Cruz, 310-914-5007
KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: LEGAL PROFESSIONAL SERVICES
SOURCE: The Law Offices of Frank R. Cruz
Copyright Business Wire 2021.
PUB: 06/11/2021 06:00 PM/DISC: 06/11/2021 06:02 PM