Qualis Innovations Inc (QLIS)

[Crusader]

GOING DARK HERE, LIGHTING UP THERE??

What is SKYC's "Plan B"?

Plan A would seem to be resumption of filing financial papers either with the Pinksheets or with the SEC's EDGAR. SKYC COULD WITHDRAW ITS FORM 15 WITH THE SEC AND FILE BACK YEARS FINANCIALS.

BUT IS THERE A "PLAN B"?

Maybe the edited Reuters article pasted below points to a "plan B" that salvages AIV's stock value on another stock exchange in Hong Kong or mainland China! After all, SKYC is growing like mad according to the Chinese press, not fading into bankruptcy.

COULD THIS BE THE SKYC ALTERNATIVE PLAN:

Chinese companies retreat from U.S. listings
Mon, Jan 14 2013

* Dozens of Chinese companies go private, end disclosures
* Suspect accounting ruins chances for raising money
* Regulatory standoff further clouds future for firms

By Dena Aubin and Olivia Oran
NEW YORK, Jan 14 (Reuters) - "...Chinese companies are deserting U.S. stock markets in record numbers as regulatory scrutiny mounts and the advantages of a U.S. listing slip away. U.S. government investigations of suspect financial reports and battered share prices have for many Chinese companies wrecked the chances of raising new money in the United States and given them little reason so stay, China experts said.
"There's very little in way of new capital flows to those companies, their valuations are low and they're encountering significant headwinds in terms of regulatory oversight," said James Feltman, a senior managing director at Mesirow Financial Consulting.

Twenty-seven China-based companies with U.S. listings announced plans to go private through buy-outs in 2012, up from 16 in 2011 and just six in 2010, according to investment bank Roth Capital Partners. Before 2010, only one to two privatizations a year were typically done by China-based companies, Roth said.

In addition, about 50 mostly small Chinese companies "went dark," or deregistered with the U.S. Securities and Exchange Commission, ending their requirements for public disclosures. That was up from about 40 in 2011 and the most since at least 1994, when the SEC's records start.
Companies with a limited number of shareholders can voluntarily go dark and rid themselves of the cost of public filings without buying out investors..."

"It's just another black eye for U.S.-listed companies," said James O'Neill, managing director of Jin Niu Investment Management Co, a Beijing-based firm.

Meanwhile, just three Chinese companies successfully went public on U.S. exchanges in 2012, down from 12 in 2011 and 41 in 2010.

About 300 China-based companies still have shares trading in the United States on exchanges or "over-the-counter" between individual dealers.

Bankers are aggressively pitching the idea of companies pulling out of the United States and relisting elsewhere, saying they can get a better share price in Hong Kong or mainland China, according to lawyers who work on going-private deals.

"The idea is that the markets here understand the China story better and will therefore hopefully assign a higher valuation to the stocks," said Mark Lehmkuhler, a partner at Davis Polk in Hong Kong.

U.S.-listed Chinese companies in the consumer staples sector, for example, were trading recently at a 67 percent discount to comparable Chinese companies on the Hong Kong Exchange, according to investment bank Morgan Joseph.

REGULATORS IN HIGH-STAKES STANDOFF
A failure by U.S. regulators to reach an agreement soon with China on accounting oversight may push more Chinese companies to abandon their U.S. listings, bankers and lawyers said.

The United States has been trying to get access to audit records and permission to inspect Chinese audit firms to combat a rash of accounting scandals. China has balked, leaving the future of U.S. listings for Chinese companies in doubt.

"I expect everyone is making alternative arrangements" in case U.S. and Chinese regulators do not reach a deal, said Paul Gillis, an accounting professor at Peking University in Beijing..." (Snip & cut)

Also see: http://china.fixyou.co.uk/2012/10/chinese-companies-going-dark.html

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I PREFER PLAN A BECAUSE I AM LAZY AND DO NOT WANT A STOCK ACCOUNT IN HONG KONG OR CHINA.-TOO MUCH IRS RED TAPE REPORTING ON FOREIGN ACCOUNTS HELD BY US CITIZENS.
THE ACCOUNTING FEES ON SUCH FOREIGN ACCOUNTS CAN BE $5,000 per year.