Why Tian Ruixiang Holdings Ltd (TIRX) Surged Last Week

We recently published a list of Small Stocks, But Explosive: These 10 Firms Crushed The Market Last Week. In this article, we are going to take a look at where Tian Ruixiang Holdings Ltd (NASDAQ:TIRX) stands against other firms that led last week’s charge.

China-based insurer Tian Ruixiang Holdings Ltd (NASDAQ:TIRX) saw its share prices increase by 47 percent week-on-week as investor sentiment was buoyed by a share swap deal with an AI-driven hospital and health insurance risk management platform for $150 million.

In a statement, Tian Ruixiang Holdings Ltd (NASDAQ:TIRX) said that it is set to acquire 100 percent of the issued and outstanding shares of Ucare Inc. in exchange for more than 101 million of its shares at a par value of $0.025 each.

The transaction would make Ucare sellers the controlling owner of Tian Ruixiang Holdings Ltd (NASDAQ:TIRX), effectively owning 91.75 percent of the company, which would represent approximately 13.70 percent of its total voting power.

A financial adviser in a suit talking with a senior client about their life insurance policy.

However, it remains unclear if the transaction would result in a potential backdoor listing.

Both parties expect the transaction to close by July 2025. Shares issued to the sellers will be held in escrow and released based on Ucare achieving a cumulative revenue target of at least RMB150 million over the three years post-closing.

Overall, TIRX ranks 9th on our list of firms that led last week’s charge. While we acknowledge the potential of TIRX, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TIRX and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.