GDC Stock Surges 65% In Pre-Market After Brutal Rout Amid Take-Private Offer – Retail Bulls Now Eye $1

• Wealthy Concord and East Valley Technology offered to buy all outstanding shares of GDC at $10.75 per share.
• GD Culture Group created a special committee made up of three independent directors to review the proposal, though no decision has been made yet.
• The stock crashed from $6 to $0.15 over the past two sessions.

Shares of GD Culture Group (GDC) soared more than 65% in pre-market trading on Friday, extending the stock’s recent frenzy as investors weighed the prospects of a high-profile take-private proposal unveiled earlier this week.

If the gains hold, GDC stock would snap a brutal two-session rout that erased more than 97% of its value.

Why Is GDC In The Spotlight?

The New Jersey-based microcap tech firm initially came under the radar after it received a preliminary proposal from Wealthy Concord and East Valley Technology on Tuesday to take the company private.

The group offered to buy all outstanding shares at $10.75 per share in cash, a nearly 169% premium to GDC’s April 30 closing price. The consortium currently owns about 9.2% of the company’s outstanding shares. The stock had closed 22% higher.

The following day, GD Culture Group established a special committee composed of three independent directors to review the proposal. The committee can also hire independent legal and financial advisors to assist in evaluating the offer.

However, the shares crashed 79.3% on Wednesday, followed by an even larger 87.8% the next session. GDC shares fell from roughly $6 to $0.15 in this period.

At the time of writing, the offer hasn’t been accepted or rejected yet.

GDC Bulls Eye $1

Retail sentiment on Stocktwits remained in the ‘extremely bullish’ territory despite the sharp selloff. Message volumes on the platform jumped 123% over a 24-hour period and a mammoth 30,400% over the past seven days. The number of users tracking the stock increased nearly 5% since yesterday, according to Stocktwits data.

One user said the stock has bottomed out and now expects it to climb back over $1.

Another user said the stock will be a “multiday runner” and pegged its target at $3.50.

Another user mentioned a potential share repurchase given the high trading volumes. More than 121 million shares changed hands in pre-market trading, compared with an average of around 24,000, according to Stocktwits data.

In February, the board approved a share buyback program allowing the company to repurchase up to $100 million of its stock over the next few months through Aug. 17, 2026.

The stock has plunged more than 96% so far this year.

Read also: Why Is IOVA Stock Falling Today?

For updates and corrections, email newsroom[at]stocktwits[dot]com.