By Kathryn Hardison
Yoshitsu Co. Ltd.’s American depositary shares fell 18% to $1.88 on Monday after soaring last week on the news that it would acquire Japanese cosmetics retailer Tokyo Lifestyle Ltd.
ADRs of Yoshitsu gained 70% during Friday morning trading after the announcement, and shares ended the day at $2.30, according to FactSet.
Tokyo-based Yoshitsu, a retailer and wholesaler of Japanese beauty and health products, said it entered into a deal with All Seas Global Ltd. on July 20 to buy the Hong Kong-based Tokyo Lifestyles, which imports Japanese beauty and cosmetic products.
The transaction will cost Yoshitsu JPY392 million (US$2.8 million) in cash and is expected to close by the end of July.
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