When is a Chinese cashmere seller relevant to the gaming industry? When they hold 30% equity in one of the developers. L&A International Holdings Ltd is not only a mouthful, a few months ago they traded for 30.6% equity interest in Red 5, developer of the ever-struggling MMO Firefall. If you’re interested in buying stocks in L&A International, you can’t. The company has been suspended from the Hong Kong stock exchange and its stock is effectively worthless.
At the request of L&A International Holdings Limited (the ‘‘Company’’), trading in the shares of the Company on The Stock Exchange of Hong Kong Limited has been halted from 1:14 p.m. on Friday, 22 July 2016 pending the release of an announcement in relation to inside information.
Shares for L&A International Holdings Ltd had dropped to .02 HKD, or slightly over a quarter of a penny USD. L&A International plans on placing more shares in the coming days. The news of their hardship precedes this week’s news that Red5 Studios appears to have undergone another round of layoffs. Community manager FadedPez posted the following on this Twitter:
Firefall’s last update was in May, and the game appears to be bleeding users at a steadily increasing rate over the last four months or so. Looking at its troubled past, it only seems to be a matter of time before the team (what is left of them) throw in the towel.