NEW YORK, December 31, 2025, 05:13 ET — Premarket
- ORIS up about 37% in early premarket trading after announcing a non-binding acquisition LOI
- Company targets a controlling stake in Hubei Daguan Tea Industry Group
- Traders eye follow-on disclosures on deal terms, financing, and timing
Shares of Oriental Rise Holdings Limited jumped 36.9% to $1.67 in premarket trading on Wednesday after the China-based tea supplier said it signed a non-binding letter of intent to acquire a controlling equity interest in Hubei Daguan Tea Industry Group.
The proposed move matters now because it aims at a pressure point for food-and-beverage producers: securing reliable inputs while controlling costs. Oriental Rise pitched the deal as part of a “vertical integration” strategy—owning more steps of the supply chain, from cultivation and processing to downstream sales—to improve margins over time.
The company did not disclose a purchase price or other financial terms. It said it will conduct due diligence—an in-depth review of the target’s operations and finances—and that any deal would still depend on definitive agreements and customary conditions.
“We believe that securing upstream resources and production capacity is fundamental to improving long-term competitiveness and earnings quality in the tea industry,” Chief Executive Officer Dezhi Liu said. GlobeNewswire
Investors are also digesting the move against the backdrop of a 1-for-20 reverse stock split, which can amplify percentage swings when volumes are light. Nasdaq Trader said the reverse split and a related par value change were set to become effective on Dec. 30.
A reverse split consolidates shares—fewer shares at a higher price per share—without changing the underlying value of the business on its own. It is often used to lift a stock’s headline price and can make short-term moves look sharper, especially outside regular trading hours.
Oriental Rise closed at $1.22 on Tuesday, down 6.0%, with trading volume around 3.19 million shares, according to market data compiled by Finviz.
Daguan Tea runs operations spanning tea cultivation, large-scale processing, product development and brand management, Oriental Rise said. The target also operates automated production facilities and has export channels, the company said.
Those export channels are one reason traders latched onto the headline. For a small producer, adding scale and distribution can matter more than incremental revenue—if the acquisition actually closes on workable terms.
The “non-binding” part is doing a lot of work here. A letter of intent is a statement of direction, not a contract to buy, and deals at this stage can collapse if diligence turns up issues or if financing doesn’t come together.
What investors will watch next is whether Oriental Rise files more detail on price, funding, and timeline. In small-cap deals, the financing structure—cash, stock, or new capital—often drives the stock reaction as much as the target itself.
Premarket trading can also be thin, which can widen the bid-ask spread—the gap between what buyers are bidding and what sellers are asking. That can exaggerate early moves before liquidity improves when the regular session opens.
