Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Litigation processes still ongoing in Brazil in Sep. 2020
"
RECLAMADO CHUN WANG FAN
RECLAMADO CHUNG LIT FREDERICK KWOK
RECLAMADO DISCOBRAS INDUSTRIA E COMERCIO DE ELETRO ELETRONICA LTDA
"
https://www.jusbrasil.com.br/diarios/documentos/922845996/andamento-do-processo-n-0001717-5620125050133-atord-08-09-2020-do-trt-5?ref=feed
https://www.jusbrasil.com.br/processos/nome/28784816/discobras-industria-comercio-de-eletro-eletronica-ltda/bloco-diario
Discobras subsidiary: Process Progress
District of (a) Lauro de Freitas 1st Rod of the Public Treasury
2nd Chamber of Commerce and Commercial Relation Works Rua da Saúde, No. 52, Centro - Cep 42700-000,
OFFICE
PROCEDURE No. 0505110-16.2018.8.05.0150
ACTION: EXECUTION OF EXTRAJUDICIAL TITLE (159)
SUBJECT: [Bank Credit Card]
EXECUTIVE: ITAU UNIBANCO
EXECUTED: DISCOBRAS INDUSTRY AND COMMERCE OF ELETRO ELETRONICA LTDA, CHUNG LIT FREDERICK KWOK
https://www.jusbrasil.com.br/diarios/documentos/658933606/andamento-do-processo-n-0505110-1620188050150-13-12-2018-do-djba?ref=topic_feed
Reminder
https://www.telefonescnpj.com/nome/chun-wang-fan
Value of share capital of parent company (IFSG) = $13.2 million
Chun Wang Fan is a partner, administrator or owner of the company Discobras Industria e Comercio de Eletro Eletronica Ltda (Discobras).
Partners of Chun Wang Fan: Infoscience Media Limited, Cheng Yu Tseng, Chung Lit Frederick Kwok
https://relationshipscience.com/person/cheng-yu-tseng-4205651
Recent updates for Brazilian subsidiary litigation
https://www.jusbrasil.com.br/topicos/28784816/discobras-industria-comercio-de-eletro-eletronica-ltda
Infosmart Group Limited still operating?
Rm 1306 13/F New Commerce Ctr
19 On Sum St
SHA TIN, NEW TERRITORIES Hong Kong
+852-26370497
Company Type: Public Independent
"Infosmart Group manufactures and markets recordable DVDs and CDs. The company, which also develops Blu-ray discs, operates DVD manufacturing facilities in Hong Kong and Brazil. In addition to its disc manufacturing operations, Infosmart distributes flash memory-based drives and cards made by third parties. The company took its current form after a 2006 reverse merger with a company called Cyber Merchants Exchange. Cyber Merchants Exchange had been a shell company since selling its apparel industry trade show business in 2005. The reverse merger enabled the company to gain access to the stock market without going through an IPO."
http://www.hoovers.com/company-information/cs/company-profile.infosmart_group_limited.ceb10297c6e09a8f.html#contact-anchor
Sik Tang Fung
Director
Yuk Ling, Connie Lo
Director
Wing Kwok Suen
Director
https://www.hktdc.com/manufacturers-suppliers/Infosmart-Group-Limited/en/1X00J4ZP/
updates on Facebook on June 23 2016
https://www.facebook.com/pages/category/Commercial---Industrial/Infosmart-Group-Limited-1746444115631430/
Some apparent conclusion to proceedings in Brazil...
Fined R$ 510.000,00 or about 126kUSD.
https://www.jusbrasil.com.br/diarios/209917928/trt-5-judiciario-24-09-2018-pg-1378
Smaller sums awarded
https://www.jusbrasil.com.br/diarios/210473276/djsp-judicial-1a-instancia-interior-parte-ii-27-09-2018-pg-2959
If the subsidiary is now closed, this should leave only the parent IFSG with no operations. I hope the liquidator announces on progress in the next months.
Since the major subsidiary is still in litigation, it seems the parent group IFSG is still an ongoing entity that looks to soon be without any operational subsidiaries. I do not speak Portuguese to understand the announcements on the jusbrasil website but they appear to indicate numerous deadlines for payments and verifications of these that appear every few weeks.
I hope there is some public finalization towards the end of the year.
Thanks for your suggestion and it may be that former shareholders need to collectively approach the liquidator.
As I understand it, the creditor’s voluntary liquidation of two subsidiaries was initiated by the board of directors to wind up two Hong Kong subsidiaries: https://www.sec.gov/Archives/edgar/data/1066961/000114420410034129/v188590_8k.htm
The Hong Kong court announced the deregistration of Infoscience Media Limited. (http://www.gld.gov.hk/egazette/pdf/20162017/egn201620172377.pdf)
This leaves Discobras in Brazil as a major subsidiary of IFSG which is embroiled in legal proceedings currently.
IFSG shares were revoked by the SEC but not cancelled, given the matter was considered under the jurisdiction of the Hong Kong court. The shares still exist in my shareholder account. For revoking of shares from the public exchange by the SEC, does this ensure the company ownership become fixed?
For any available distribution after creditors are paid, who claims possible liquidation value instead of former equity holders (the majority of which were former management and who initiated the liquidation of the Hong Kong subsidiaries)? Surely this would require a public announcement to shareholders?
The liquidator did not update the Hong Kong court and it is not within their capacity to act since it is a creditor's voluntary liquidation (process V10/67/2010). The liquidator also did not update shareholders and was presumably appointed by the creditors.
InfoSmart Group Inc. became a private company after their public stock registrations were revoked on Aug. 20,2014. So, even if there was a distribution of assets after the bankruptcy there would be no distributions to former share equity interests because the shares no longer traded after Aug. 20,2014. Former shareholders would have to sue the company if the company is still in private operations.
Did you ever hear anything on the resolution of the bankruptcy process for IFSG?
As far as I can tell, they have been embroiled in legal processes for their Brazilian subsidiary and there could be a final hearing on 25th September 2018.
https://www.jusbrasil.com.br/topicos/28784816/discobras-industria-comercio-de-eletro-eletronica-ltda
It would be good if the process finally moves back to Hong Kong with a resolution announced in the Hong Kong gazette regarding any residual value for equity shareholders. The "provisional liquidator" never announced zero for shareholders after all these years.
Companies ordinance (chapter 622):
0922140 INFOSCIENCE MEDIA LIMITED struck off the companies register.
http://www.gld.gov.hk/egazette/pdf/20162017/egn201620172377.pdf
"Such companies are accordingly dissolved..." April 29 2016
http://www.guidemehongkong.com/incorporation/company/hong-kong-company-liquidation
When the liquidation process takes more than a year, the liquidator must hold a general meeting every year to keep the members informed of the winding up process. Once the company’s affairs are fully wound up, the liquidator must prepare a final account of the winding up, showing how the property of the company has been disposed off and how the winding up has been conducted. The account must be presented at a final general meeting. The meeting has to be called by advertising in the Gazette, one month prior to the scheduled date. A copy of the account, along with a return stating that the meeting was held, must be sent to the Companies Registry within one week after the meeting. The company will be dissolved three months after the Registry receives the documents or at a later date as set by a court order in Hong Kong.
More facts:
A "conservative" PPS estimate of 0.42 in 2007 and the article/other filings suggests management are majority holders of the shares:
http://www.investorideas.com/Research/PDFs/Griffen%20Rose%20Initial%20Report%2002-07-07.pdf
or another fair value estimate above 1.00:
http://www.b2i.cc/Document/1406/IFSG-factsheet.pdf
Complex share transactions in 2007 leading up to these pubications:
http://www.nasdaq.com/markets/spos/filing.ashx?filingid=4885634
(includes detail on liquidation scenario)
Strategic partnership in Brazil announced in 2008:
http://www.marketwired.com/press-release/infosmart-group-announces-10-year-exclusive-strategic-partnership-with-abomem-814597.htm
I think there was a big share sale (e.g. 10million shares by the CFO) but cannot see the 8K now. This is after debt was being "managed" with Offshore Opportunity Fund and before they all started resigning at the end of 2009.
A new website appeared briefly for Infoscience Media in Hong Kong (linked to the Discobras subsidiary website), showcasing new Blu Ray manufacturing. Then suddenly, game over after years of preparations and anticipation. No periodic filings since announcement and deregistration of shares last year while legal process apparently ongoing in Hong Kong. Shareholders are aligned with management in this due to their major positions.
Some facts:
BVPS: about 0.13 in 2010
http://www.gurufocus.com/term/Book%20Value%20Per%20Share/OTCPK:IFSG/Book%2BValue%2Bper%2BShare/Infosmart%2BGroup%2BInc
After HDVD/Blu Ray battle, DVD strategy for company outlined
http://www.nfvzone.com/news/2008/02/26/3292682.htm
Blu Ray equipment purchased
http://anwell.listedcompany.com/newsroom/Anwell_Press-Release_Infosmart-Contract-.pdf
Independent Board of Directors guiding this process.
http://www.marketwired.com/press-release/infosmart-establishes-independent-board-of-directors-749002.htm
"The experience and leadership of our four independent directors will be instrumental in creating an actively traded and fully valued stock for all Infosmart investors."
Bankrupt two years later due to missed interest payment:
"The Boards believed that it was in the Company’s best interest to wind up both companies because they owe significant amount of debts and cannot continue their business"
http://www.sec.gov/Archives/edgar/data/1066961/000114420410034129/v188590_8k.htm
A victim of the financial crisis perhaps with harsh economic conditions but no update since 2010. Missed an interest payment but hardly no value left no company. BVPS = 0.13, LVPS=? "in the Company’s best interest"
Disappointing. Fives years since the liquidation process announced in Hong Kong Gazette in 2010 with no public announcements on its progress. Shares deregistered. Perhaps the liquidation value per share (LVPS) is zero but with a book value per share of 0.13USD in 2010 shortly after purchasing new Blu Ray manufacturing equipment, it seems shareholders deserve a breakdown of the final LVPS.
From JusBrasil on September 9th 2015:
http://www.jusbrasil.com.br/diarios/busca?q=infoscience+media&o=data
Processo Nº RTOrd-0001026-79.2011.5.05.0132
Plúrima Réu Chun Wang Fan
Plúrima Réu Infoscience Media Limited
- COMPAREÇA A RECLAMANTE EM SECRETARIA PARA RECEBER CRÉDITO. - ADV RTE: ANTÔNIO SOUSA BRITO.
The wind up of the Brazilian subsidiary appears close. Does anyone have any meaningful news on the Infosmart Group/Infoscience Media liquidation process in Hong Kong? Hope information is forthcoming in the next year.
IFSG SEC Suspension:
http://www.sec.gov/litigation/suspensions/2014/34-72400.pdf
Order:
http://www.sec.gov/litigation/suspensions/2014/34-72400-o.pdf
Admin Proceeding:
http://www.sec.gov/litigation/admin/2014/34-72401.pdf
+525% IFSG
IFSG on watch volume and prints on scanner
IFSG - L2 mega thin. 110k @ .0027 ask then goes to $2.00 ??
This is by far the thinnest stock I've ever come across.
Will watch closely, These plays can end up being a big surprise.
IFSG About To Run Biggly Here~
WoW, This Could Blow Up To Pennies!
IFSG~
Indeed! Looks like 8-Ks for some reorganization!
IFSG
IFSG.....Interesting.......Hmmmmm.............
IFSG wow !! +700.00%
Volume: 7,756,396
$42mm asset vs. $22mm liability with 160mm O/S?
each share is worth more than $.1???
The latest fianacials
http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=7257695
I wonder when they are gonna liquidate the company.
Would be nice to have $.1 per share
all execs have resigned here in the last month.
BK filed 6/18
MK
don`t believe we get some pretty news in short term because superman (one for four!!) must work very hard.. see message # 318.
may be i`m wrong but this 8 k doesn`t sound well! but if superman fly to the sky and there is no krypton this stock may be work out in the second quarter..IMO
I'm certainly keeping an eye on it! I expect it’ll show how undervalued we are here.
10K should bring some new eyes here.
IFSG 18% positive move this morning out of the gate. We need some volume and IFSG will fly!
Same here, missed the dip to .02. Now bidding .02 for more
Trying to free up funds as we speak.
Time to load up on the cheap
Deliberate 25k and 50k bid whacks. Come on.....
Wonder why they jumped ship?
Followers
|
13
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
368
|
Created
|
04/01/08
|
Type
|
Free
|
Moderators |
COMPANY DATA Infosmart Group, Inc.
| SHARE STRUCTURE Authorized Shares: 300,000,000 (As of November 16, 2009)
|
Business Description The company is in the business of developing, manufacturing, marketing and sales of recordable digital versatile disc (“DVDR”) media and recordable compact discs (“CDR”). The company currently manufactures DVDRs as well as CDRs, and has been developing its DVD-R manufacturing basis in both Hong Kong and Brazil to capture the worldwide market. As the “war” between high density format DVDR (“HD-DVD”) and Blu-ray DVD formats has ended with the Blu-ray DVD format surviving in the marketplace to become the latest format of DVD recordable media, the company has a new perspective in business development in the world market for the next 5 years. The company has acquired the first set of Blu-ray DVD replication systems in the China/Hong Kong region and will devote more resources to developing the market for Blu-ray DVD replication systems. The company has customers in Western Europe, Australia, China and South America.
http://anwell.listedcompany.com/newsroom/Anwell_Press-Release_Infosmart-Contract-.pdf The company produce through two main operational business subsidiaries, Infoscience Media Limited (“IS Media”) at state-of-the-art DVDR manufacturing facilities in Hong Kong and Discobras Industria E Comercio de Electro Eletronica Limiteda (“Discobras”) at state-of-the-art DVDR & CDR manufacturing facilities in Brazil. The Quality Management System complies with ISO9001:2000 requirements, and they are ISO 9000 certified. As a result of the Blu-ray format DVD prevailing over the HD-DVD in the battle of dominating the future format of DVDR, thecompany purchased the first set of Blu-ray DVD production replication systems in the China/Hong Kong region in order to meet the demands in the high definition media storage market
|
Facilities We endorse our belief with our factory facilities. It has been proven by the SINGULUS E-Mould molding machines from Germany, production lines from SINGULUS Streamline II and Streamline/SPA, offset printing machine METRONIC from Germany, silk screen printing machine HANKY from Taiwan equipped. We have made every effort to ensure the final products are made in the best possible conditions. In the aspect of dust control, we have attained a world standard - 10,000-class environmental clean room throughout our production house. The production house has also employed with in-house quality controllers that perform preliminary, intermediate quality control inspections that compiles with Philips Orange Book standards. Newest drives will be purchased and are used to perform compatibility tests in order to ensure highest compatibility.
Segment Information The Company is engaged in the manufacture and distribution of Blu-ray, DVDR, CDR and non-diskette storage media (Flash card and Micro SD). The nature of the products, their production processes, the type of their customers and their distribution methods are substantially similar. Information for the DVDR, CDR products, flash drive , memory card and blu-ray are disclosed under FAS 131, “Disclosures about Segments of an Enterprise and Related Information” as below:- As of March 31, 2009, we had 150 full-time employees, including management. None of these employees are represented by any collective bargaining agreements. Neither we nor any of the subsidiaries have experienced a work stoppage. Management believes that our relations with our employees are good |
PRODUCT LIST
|
PACKAGING LIST
|
Latest 10-Q (Period Ending 9/30/2009)
As of | ||||||||
September 30, | December 31, | |||||||
2009 | 2008 | |||||||
(Unaudited) | (Audited) | |||||||
COMMITMENTS AND CONTINGENCIES – note 10 | ||||||||
STOCKHOLDERS’ EQUITY | ||||||||
Common stock: No par value – note 11 | ||||||||
Authorized: 300,000,000 shares; Issued and outstanding: 2009 – 161,560,520 shares and 2008 –161,560,520 shares | 4,557,827 | 4,557,827 | ||||||
Additional paid-in-capital – note 11 | 8,118,664 | 8,118,664 | ||||||
Accumulated other comprehensive income | (1,175,231 | ) | (4,322,676 | ) | ||||
Retained earnings | 11,209,503 | 11,303,600 | ||||||
TOTAL STOCKHOLDERS’ EQUITY | 22,710,763 | 19,657,415 |
As of | ||||||||
September 30, | December 31, | |||||||
2009 | 2008 | |||||||
(Unaudited) | (Audited) | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 213,353 | $ | 449,089 | ||||
Trade receivables | 5,435,632 | 7,628,529 | ||||||
Prepaid expenses and other receivables | 5,861,275 | 4,653,565 | ||||||
Prepaid tax | 1,868,433 | 880,008 | ||||||
Inventories (net of allowance for doubtful accounts of $Nil for 2009 AND 2008) - note 6 | 1,667,224 | 1,906,445 | ||||||
Advance to a related party | 571,416 | - | ||||||
Total current assets | 15,617,333 | 15,517,636 | ||||||
Deferred tax assets - note 4 | - | - | ||||||
Plant and equipment, net - note 7 | 26,738,566 | 28,210,693 | ||||||
Intangible assets | 1,316,840 | 1,528,475 | ||||||
TOTAL ASSETS | $ | 43,672,739 | $ | 45,256,804 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Net sales | $ | 5,515,148 | $ | 8,548,142 | $ | 19,727,060 | $ | 22,877,226 | ||||||||
Cost of sales | (3,642,514 | ) | (4,437,490 | ) | (14,612,752 | ) | (15,961,181 | ) | ||||||||
Gross profit | 1,872,634 | 4,110,652 | 5,114,308 | 6,916,045 | ||||||||||||
Administrative expenses | (1,513,318 | ) | (2,166,313 | ) | (3,871,036 | ) | (4,450,718 | ) | ||||||||
Selling and distributing costs | (130,155 | ) | (102,817 | ) | (447,506 | ) | (278,519 | ) | ||||||||
Income from operations | 229,161 | 1,841,522 | 795,766 | 2.186.808 | ||||||||||||
Other income | 208,634 | 47,231 | 246,516 | 1,014,769 | ||||||||||||
Interest expenses | (449,421 | ) | (136,685 | ) | (1,226,687 | ) | (571,757 | ) | ||||||||
Income / (Loss) before income taxes | (11,626 | ) | 1,752,068 | (184,405 | ) | 2,629,820 | ||||||||||
Income taxes - note 4 | - | (409,531 | ) | (4,897 | ) | (460,840 | ) | |||||||||
Net income / (loss) | (11,626 | ) | 1,342,537 | (189,302 | ) | 2,168,980 | ||||||||||
Non-controlling interest | 64,330 | (19,195 | ) | 95,206. | (34,979 | ) | ||||||||||
Net income / (loss) before dividend | 52,704 | 1,323,342 | (94,096 | ) | 2,134,001 | |||||||||||
Series B preferred dividend | - | (36,605 | ) | - | (189,313 | ) | ||||||||||
Net income / (loss) applicable to common shareholders | 52,704 | 1,286,737 | (94,096 | ) | 1,944,688 | |||||||||||
Earning / (loss) per share - note 9 | ||||||||||||||||
- basic | $ | 0.01 | $ | 0.01 | $ | (0.01 | ) | $ | 0.01 | |||||||
- dilutive | $ | 0.01 | $ | 0.01 | $ | (0.01 | ) | $ | 0.01 |
MANAGEMENT
Parker Seto – Chief Executive Officer and President
Formerly the Managing Director of WestPark Capital, Inc., Mr. Seto graduated from the Chinese University of Hong Kong with a Bachelor of Business Administration (Honour) in Professional Accountancy in 1990. Mr. Seto is a Member of the American Institute of Certified Public Accountants, Fellow Member of the Association of Chartered Certified Accountants in United Kingdom, and member of the Hong Kong Institute of Certified Public Accountants. He has extensive experience in initial public offerings and auditing public companies and provides financial advisory services. Mr. Seto was a director of the Company from March 16, 2007 until his resignation on August 9, 2007. Mr. Seto has been our Chief Executive Officer and President since August 21, 2007. Concurrent to his position with the Company and since 2002, Mr. Seto has been offering management consultancy services to several mid-sized businesses in Hong Kong and mainland China.
Po Nei Sze - Chief Financial Officer, Treasurer, Secretary and Director
Co-founder of Infosmart Group Limited, a company incorporated in the British Virgin Islands (“Infosmart BVI”) in 2002, Ms Sze has been overseeing its finance, human resources, accounting, purchasing, and shipping departments ever since. The Company effected a reverse merger with Infosmart BVI on August 16, 2006 and since August 16, 2006 Ms. Sze has been our director, Chief Financial Officer, Treasurer, and Secretary. Ms. Sze received her degree in Business Administration from the British Columbia Institute of Technology in Canada. Ms. Sze is concurrently a director of Eternal Scene International Limited since December 2002 and Prime Corporate Developments Limited since January 2004.
Andrew Chung Yuen Chang - Chairman of the Board
Mr. Chang holds a Master of Economics degree from the University of Macquarie, Australia and a Bachelor of Commerce degree from the University of New South Wales, Australia where he majored in accounting. In 1995, he founded Hung Tat International (HK) Ltd. (“Hung Tat”), a telecommunications devices manufacturing business which employs 1,400 workers today and makes yearly revenue of HK$15 million. Hung Tat mostly exports its products to the U.S., and its major customers include Family Dollar, Best Buy, Circuit City, Southern Telecom, and jWIN Electronics. Mr. Chang has been our Chairman of the Board since August 16, 2006. He is concurrently a director of Honor Lustre Ltd. since September 2005, Hung Tat Far East since April 2002, Hung Tat since January 1998, and Health Genius International Ltd. since May 1996.
Sebastian Tseng - Regional Director South America
- Oversees Discobras operation in Brazil and sales in South America.
- Previously C.E.O. and V.P., Sales/Purchasing Manager, respectively, at two companies trading in optical dye and optical discs.
- New york Polytechnic University, Master of Science, Chemical Engineering; University of California, San Diego, Bachelor of Science, Chemical Engineering.
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |