If by January 15th, the company's stock market value can recover to its previous level, then these independent investors will close their positions and exit.
This business will bring them substantial returns, potentially doubling their investment.
But if Liji Group's stock cannot return to its previous price by January 15th, then Liji Group must buy back these stocks in full at the agreed-upon price, which is significantly higher.
In other words, these independent investors' demand is "guaranteed profit with no loss", and they also want Liji Group to owe them a favor.
Many people say that in this world, there's no such thing as a guaranteed profit business, but sometimes this may not be entirely true, especially right now.
To ensure independent investors can achieve a guaranteed profit without loss, Liji Group needs to pledge some assets to them or place them in the bank as security for the safety of these funds.
