YSYB 6/1/2008 CLOSED @ $5.50 !
2nd analysis is just as enlightening as the 1st take of understanding this bonanza.
10K page 101 quoted:
"The agreement also provides that if the Company doesn’t file, or if the registration statements aren’t declared effective throughout the required period, or if the Company ceases to trade on certain exchanges as defined, the Company shall pay damages equal to 1.5% of the amount invested for each calendar month capped at a cumulative damage payment amount of 15%. In connection with the sale of the Series A Convertible Preferred Stock during October 2007, the Company committed to apply to list and have its shares of common stock traded on the Nasdaq Capital Market, the Nasdaq Global Select Market or the Nasdaq Global Market or any successor market thereto (collectively, “Nasdaq”), or the New York Stock Exchange or any successor market thereto (together with Nasdaq, each a “National Stock Exchange”), no later than December 31, 2008. As a result of failing to achieve such listing, the Company’s majority shareholder, Winner State Investments Limited, committed to transfer 1,000,000 shares of common stock in the Company to the purchasers of shares of Series A Convertible Preferred Stock of the Company. The Company has accounted for this as a contribution of capital by its majority stockholder and recorded a charge to operations in the amount of $4,480,000 for the year ended December 31, 2008. Such shares were valued based on the closing market price of $4.48 per share on December 31, 2008."
End quote.
JUST ASTONISHING.
So therefore, obviously, a million shares of YSYB on December 31, 2008 was valued at $4,480,000 !
WE PURCHASED THE SAME SHARES ( WITH OVER QUADRUPLE THE COMPANY ) FOR PENNIES!
JUST STAGGERING & AMAZING GOLD MINE OF VALUED SHARES!!
10K page 101 quoted:
"Each share of Series A Convertible Preferred Shares is convertible into one share of Common Stock, subject to standard adjustment provisions as set forth in the Certificate of Designations for our Series A Convertible Preferred Shares,
During the year ended December 31, 2012 710,000 shares of Series A Convertible Preferred Stock were converted into 710,000 shares of common stock. During the year ended December 31, 2011, 400,000 shares of Series A Convertible Preferred Stock were converted into 400,000 shares of common stock."
End quote.
WOW! 710,000 + 400,000 = 1,110,000 shares, converted from $2.15/share preferred to common stock! WHOA!
10K page 100 quoted:
"Series A Convertible Preferred Stock has liquidation rights senior to common stock and to any other class or series of stock issued by the Company not designated as ranking senior to or pari passu with Series A Convertible Preferred Stock. In the event of a liquidation of the Company, holders of Series A Convertible Preferred Stock are entitled to receive a distribution equal to $2.15 per share prior to any distribution to the holders of common stock or any other stock that ranks junior to the Series A Convertible Preferred Shares. Series A Convertible Preferred Stock is entitled to non-cumulative dividends only upon declaration of dividends by the Company. To date, no dividends have been declared or accrued. Series A Convertible Preferred Stock will participate based on their respective “as-if” conversion rates if the Company declares any dividends. Holders of Series A Convertible Preferred Stock also have voting rights required by applicable law and the relevant number of votes shall be equal to the number of shares of Common Stock issuable upon conversion of Series A Convertible Preferred Stock.
The gross proceeds of the sale were $21.5 million. The proceeds from the sale were allocated to Series A Convertible Preferred Stock, warrants and beneficial conversion features based on the relative fair value of the securities. The value of Series A Convertible Preferred Stock was determined by reference to the market price of the common stock into which it converts, and the fair value of the warrants was calculated using the Black-Scholes model with the following assumptions: expected life of 5 year, expected dividend rate of 0%, volatility of 27% and an interest rate of 4.24%."
End quote.
TWENTY ONE & A HALF MILLION U.S. DOLLARS PURCHASED YSYB STOCK FOR $2.15 SHARE!
10K page 100 quoted:
"
16. CONVERTIBLE PREFERRED STOCK AND WARRANTS
SERIES A
On October 3, 2007, the Company sold 9,999,999 shares of Series A Preferred Stock and various stock purchase warrants for cash consideration totaling $21.5 million dollars. In addition, in connection with the sale of the Preferred Stock, certain advisors were provided warrants. The number of shares, exercise price and contractual terms eligible to be purchased with the warrants are summarized in the following table:
Number of warrants
Series of warrant 12/31/2012 12/31/2011 Exercise price Contractual term Expiration Date
Series A 0 10,000,000 $ 2.75 5 years October 2, 2012
Series B 0 5,000,000 $ 3.50 5 years October 2, 2012
Series J 0 0 $ 2.37 1.5 years April 3, 2009
Series C 0 0 $ 3.03 5 years April 3, 2009
Series D 0 0 $ 3.85 5 years April 3, 2009
Series E 0 1,000,000 $ 2.58 5 years October 2, 2012
Series F 0 500,000 $ 3.01 5 years October 2, 2012
Total 0 16,500,000
End quote.
ALL ( now expired ) WARRANTS A-F, & J PRICES PAID ARE ASTOUNDING! ( $2.37 to $3.85 )
BOTTOM LINE TAKEAWAY:
WE DIDN'T BUY THESE SHARES, WE STOLE 'EM!
SO CONSIDER THAT ~ WHILE WAITING FOR RECOVERY OF MARKETS IN CHINA.
YSYB HAS EXPANDED & GROWN SUBSTANTIALLY & EXPONENTIALLY SINCE (1996) 2007.
Reminded that FLOAT IS LOCKED, SO IMHO SHARES WOULD BE VALUED ABOVE $20./ SHARE EASILY.
((( IF YOU HAVE 100,000 shares, that's $2 MILLION, IF $20./ SHARE, AS REASONABLY LIKELY WITH SUCH A TINY LOCKED FLOAT. )))
GO YSYB GO BABY GO > >> >>>
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