YaSheng Group (HERB)

[RealDutch]

I know they don't communicate very well. But that's what it is, a classic hidden gem. This is what they said in the filing.

While we do not see an immediate threat to our operations, in order to support our future growth we believe this swap is the best strategy.

"Support our future growth". IOW, Angel Star, Hemp and mining. Whatever they have planned.

If you look at the Angel Star presentation...
http://yashengusa.com/angel-star-infant-formula/
They needed $8M to get this one going.
They already have the cash now, so they don't need the RegD 506C offering. And they will increase their stake in the Joint Venture to 55.75% in the process (page 15) which also means they will consolidate those assets (100%) going forward. They will need to invest more money if they want to ramp it up quickly, which they have already.

Other than that, who really knows. Perhaps they will acquire a bigger stake in the Hemp JV.

They can do lots of stuff now. They could even spin off 40% of the 5 plantations and raise $1 billion in cash. Would be very interesting to see how that one would affect the share price. SIAF is doing it also, trying to get a listing for their plantation. How hard can it be? The appraisal firm has already evaluated the assets. But it's probably going to take some time. Nevertheless, they did mention in the 10-K that they plan to speed up a listing after the swap.