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I wouldn't. You can't hedge a bet since this stock is not optionable. It's all in or nothing. Too many hookers in that non-binding announcement. Typically, a tender offer carries with it a substantial penalty for breaking the deal. This doesn't. Too cozy. Seems like naked stock manipulation by the insider.
I would pass on this play.
So should we buy more. Or what. It's def not a done deal. That's the problem he may not get the financing or it all might fall thru. I would think it would drop 50 percent then at least. This is def a gamble. Make a double from here or lose 50 percent of your money hmmmmmmm. Imo
graw why wait, let it be today
Tibet Pharmaceuticals, Inc. Announces Receipt of Non-Binding "Going Private" Proposal at $3.00 Per Share
Mar 1, 2012 8:53:00 AM
SHANGRI-LA COUNTY, China, March 1, 2012 /PRNewswire-Asia/ -- Tibet Pharmaceuticals, Inc. (NASDAQ: TBET), an emerging specialty pharmaceutical company engaged in the development, manufacturing and marketing of traditional Tibetan medicine in China, today announced that its Board of Directors has received a non-binding proposal letter from its Chairman and Chief Executive Officer, Mr. Hong Yu ("Mr. Yu"), for Mr. Yu to acquire all of the outstanding shares of the Company's common stock not currently owned by Mr. Yu, in a going private transaction for $3.00 per share in cash subject to certain conditions. According to the proposal letter, the acquisition is intended to be financed with a combination of debt and equity capital to be secured by Mr. Yu. Mr. Yu currently beneficially owns approximately 22.1% of TBET's common stock. A copy of the text of Mr. Yu's proposal letter is set forth at the end of this press release.
TBET's Board of Directors has formed a special committee consisting solely of independent directors (the "Special Committee") to consider, among other things, any proposal made by Mr. Yu, and the Special Committee will retain an independent counsel as its legal advisor to assist the Special Committee in its work. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that a transaction with Mr. Yu or any other transaction will be approved or consummated. The Company does not intend to disclose developments regarding these matters unless and until its Board of Directors determines there is a need to update the market.
March 1, 2012
Board of Directors
Tibet Pharmaceuticals, Inc.
Room 1701, 17th Floor
Wanchai, Hong Kong
Dear Sirs:
I, Hong Yu, am pleased to submit this preliminary non-binding proposal (the "Proposal") to acquire the outstanding ordinary shares of Tibet Pharmaceuticals, Inc. (the "Company") that are not currently owned by myself in a going-private transaction (the "Acquisition"). The terms and conditions of the Proposal on which I contemplate to pursue the Acquisition are set forth below:
1. Purchase Price. The purchase consideration payable for each ordinary share of the Company (other than those held by myself) will be the amount of $3.00 per share in cash, which represents a premium of 317% to the Company's closing price on February 26, 2012 and a premium of 141% to the volume-weighted average closing price during the last 30 trading days. I believe that the proposed purchase price provides a very attractive and beneficial alternative to the Company's shareholders.
2. Financing. It is currently expected that the Acquisition will be primarily financed with my own funds and related sources but may be supplemented by possible debt financing. If necessary, I would enter into discussions and negotiations, and possibly agreements, with potential sources of debt financing. At this point in time, there is no arrangement with any such potential source of debt financing in relation to the Proposal, and I do not propose to make any agreement of exclusivity prior to reaching transaction terms approved by the Board of Directors.
3. Buyer. I intend to form an acquisition vehicle for the purpose of pursuing the Acquisition.
4. Due Diligence. To the extent debt financing is required, parties providing financing will require a timely opportunity to conduct customary due diligence on the Company.
5. Definitive Agreements. I am prepared to negotiate and finalize definitive agreements ("Definitive Agreements") providing for the Acquisition and related transactions very promptly. Such Definitive Agreements will provide for conditions and covenants typical and appropriate for transactions of this type.
6. Confidentiality. I intend promptly to file an amendment to my Schedule 13D to disclose this letter.
7. Process. I believe that the Acquisition will provide superior value to the Company's shareholders. I recognize that the Board will evaluate the proposed Acquisition independently before it can make its determination to endorse it. Given my involvement in the proposed Acquisition, I also recognize that independent members of the Board will proceed to consider the proposed Acquisition. In considering my offer, you should be aware that I am interested only in acquiring the outstanding shares of the Company that are not currently owned by myself, and that I do not intend to sell my stake in the Company to a third party.
8. Advisors. I will retain legal counsel in connection with the Acquisition.
9. No Binding Commitment. This Proposal letter does not constitute any binding commitment with respect to any Proposal or transaction. Any commitment will result only from the execution of Definitive Agreements, and then will be on the terms provided in such documentation.
I would like to personally express my commitment to work with the Board to consummate this Acquisition in a timely manner. Should you have any questions regarding these matters, please do not hesitate to contact me. I look forward to hearing from you.
Sincerely,
/s/Hong Yu
Hong Yu
About Tibet Pharmaceuticals, Inc.
Based in Shangri-La County, Yunnan, China, Tibet Pharmaceuticals, Inc. (NASDAQ: TBET - News) is an emerging specialty pharmaceutical company engaged in the research, development, manufacturing and marketing of modernized traditional Tibetan medicines in China.
Forward-Looking Statements
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts.
These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, changes in company valuations and investor perceptions of companies, and other risks contained in reports filed by the company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
Company Contact:
Tibet Pharmaceuticals, Inc.
Fiona Wang
Tel: +86-150-1015-6497
Email: shangrilapharm_IR@163.com
www.tibetpharmaceuticals.com
SOURCE Tibet Pharmaceuticals, Inc.
NEWS NEWS NEWS
http://ih.advfn.com/p.php?pid=nmona&article=51437413
funny how nothing happened after hours... i think tomorrow and Friday are gonna be Huge.
It rises and falls with that upcoming 8k filing - would love to see shorties covering their butts like they did on HRBN
Why do you think anyone should "go after them"?
I guess they dont care about p/rs they put out. heck there in china no one is going after them....
it would benefit him to have a majority of shares to influence the board to ensure a quick approval. He couldn't all the shares in the open market, so then he would make the firm offer.
All speculation on my part without those forms. BTW even if it fell through they would need a 8k just to say that.
Hell that would be double from here again
I believe it will get there soon. Friday will likely be a very big day.
Oh. Maybe that's why it's not going up then. Even if u buy now it won't go to 3. Doesn't make sense
Resistance and Support have nothing to do with fundamentals and everything to do with technicals. Big difference between trading and investing.
Sure he can. Just has to submit a form 4 within two days of the transaction after he does.
We haven't seen the 8K, maybe he doesn't know the rules. Those shares are gone now. They held up the stock both days, as soon as the lots were sold, the PPS dropped. UBS is usually high net worth clients. I would not be surprised if someone was scooping them up.
He can't do that can he? Especially after he said he would buy it at 3. He's getting a great deal if he is doing now!
maybe the ceo is buying on the open market. UBS has been big on the bid the last two days
$3 dollar buy out claim sounds to easy DONT GET ME WRONG I HAVE A SMALL POSITION!!
FUNDAMENTALLY the stock has stayed above support level 1 and broke through resistant level 1 and drop back down above support level doesnt say much but FUNDAMENTALLY it's saying I'm breaking out BUT WE SHALL SEE
Trust me your not. Something is fishy but man I think people are makin money trading the heck out of it.
TBET- Am i the only one questioning the volume vs PPS movement here today??? Nearly the entire 7M float was turned over today and only up 20%???
Average volume 1.26m
Shares outstanding 14.85m
Free float 7.08m
P/E 1.87
Market cap 22.27m
EPS 0.8016
Avg daily vol was under 50k last week, over 10M shares traded in the last 2 days, O/S is only 14M???
2012/02/28 1.85 2.15 1.67 1.81 5,695,634
2012/02/27 1.80 2.36 1.40 1.50 4,960,843
2012/02/24 0.83 0.90 0.67 0.72 441,046
2012/02/23 0.83 0.84 0.77 0.82 47,330
2012/02/22 0.87 0.87 0.79 0.84 22,153
2012/02/21 0.84 0.90 0.79 0.89 48,884
2012/02/20 0.88 0.91 0.88 0.91 18,518
2012/02/17 0.88 0.94 0.82 0.91 18,518
2012/02/16 0.84 0.95 0.77 0.91 10,460
2012/02/15 0.98 0.98 0.80 0.84 25,090
2012/02/14 0.92 0.92 0.84 0.84 21,275
2012/02/13 1.00 1.00 0.89 0.94 31,610
Here are my thoughts.
Sit back and enjoy the ride, because MM's play around with the pps until some type of SEC filing that details the deal comes out, IMO.
She's holding at 1.87 now. Weird
I smell an 8-K on the way and then BOOMAGE.
Yes. They are def trading the heck out of this stock. It's making huge moves.
Awesome, gj I bought in yesterday @ $2.20 or so and about crapped myself at EoD yesterday.. looking much healthier today. If that 8K hit, there is plenty of money to be made ;-D
I sold today for a 50 percent profit. Not bad for less then 12 hrs ago
There is just too many skeptics out there about the chinese sector... this however, I want to believe, is the real deal..
Just spoke with Fiona Wang
Call this number that Chicken gave and you can speak to her yourself as I did no less than 5 mins ago.
Fiona Wang said the exact same thing she said to Chicken that they will be filing there 8k shortly and that the buyout is 100% legit.
Please don't take my word or anyone elses call 01186 15010156 497
and if your cheap like me use this website to make the call!
http://www.freephone2phone.com/
That is completely correct and if I was on this board I would raise the bid of $3.00. A year ago they invested over 5million at a price of $5.50. Investors will get robbed at $3.00. Its a great deal for Mr. Yung Hu though
I would think the order is
Formal offer to the Board of Directors.
Board weighs the offer, accept, deny, ask for how he is going to pay for it.
CEO files payment plan. Cash or loan.
If loan then who what where when
insert possible Seeking Alpha hit piece and Rick Pearson
Hit piece to move the stock price down, then up, then down, then up.
The good news is that there are no options for this stock. So Shorters have to use hard cash.
Looking Good this AM. This stock will hit $3.00 soon.
Hopefully Mr. Yung Hu is gobbling up shares if he is smart.
This is a nice report but it must have been issued sometime at the beginning of last year. The buyout is probably legit and most are just skeptical of these Chinese companies which is why we were no where near the price target of $3.00 +/- yesterday.. I picked up some shares and will be waiting on the sideline for more details.. The time it takes for these companies to privatize can be quite lengthy but one of the first things to happen is the company's common shares comming off the market. Should be a nice sideways day today, many awaiting the verdict.
MUST READ
AS I stated on the yahoo message board this is a legit company that came out with its own IPO and funding. It's all bad timing and I don't blame them for going private.
http://www.otcjournal.com/1-Plus-in-Earnings-for-4/af/archive/20110419-1/
I will loading the boat for this buyout.
who knows! I am riding the momo! I had this on my junk stocks pile lol once a while a junky prove to be a prime beef
This was the top 5 worst IPO's of 2011...why???
wwweeeeeeee I thought this stock was dead in the water. Wow! what a surprise
Does any see a second spike ? They're saying $3 a share asking sell price
Great!!! money made is money earned.
I made a few on the morning run. Owed you one. thanks again
Thanks pal
COngrats bro. Weeeeeee
You never know. Good luck !
Hmmmm, maybe they will come out with details within the next couple of hours
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http://www.tibetpharmaceuticals.com/
http://www.tibetpharmaceuticals.com/investors.html
http://finance.yahoo.com/q/ks?s=TBET+Key+Statistics
Based in Shangri-La County, in Yunnan Province, China, Tibet Pharmaceuticals, Inc. (Nasdaq: TBET) is a growing and profitable specialty pharmaceutical company engaged in the research, development, manufacturing and marketing of modernized traditional Tibetan medicines.
All of its current products are offered and derived from Tibetan based traditional medicines and are manufactured by Tibet Pharmaceuticals using plant-based natural materials, particularly the herbs and minerals found in the high-latitude, low-temperature, and pollution-free environment of the Qinghai-Tibet Plateau. Tibet Pharmaceuticals sells five major prescription and over-the-counter Tibetan medicine products, each of which has certain medicinal functions and has demonstrated safety and efficacy in accordance with China's SFDA requirements.
Tibet Pharmaceuticals' objectives are to maintain and strengthen the position of its products in the Tibetan medicine healthcare segment in China. The company is expanding its distribution network to diversify and broaden its market penetration. Tibet Pharmaceuticals intends to further expand its reach by building or acquiring national or regional distribution points to drive additional growth of its existing and future products. Pursuing additional acquisitions and licensing opportunities is a significant component of Tibet Pharmaceuticals' growth strategy. Acquisition targets would be Tibetan pharmaceutical companies who have very competitive products, with strong efficacy.
Tibet Pharmaceuticals believes that it has benefited from the overall economic development in China in recent years and the increase in the number of elderly people in China, which together have resulted in increased expenditures on medicine in China, including traditional Tibetan medicine. The Chinese have long perceived and accepted traditional Tibetan medicine as a safe and effective solution to diseases, having the advantage of causing fewer side effects than western medicine, due to the natural ingredients used. With the improvement of living standards in China, the health care industry has grown substantially in recent years, which also stimulated the domestic demands for Tibetan medicine. As China's elder population grows, as well as the increased awareness and perception of the safety of traditional Tibetan medicine products, the market demand for traditional Tibetan medicine products is expected to keep growing.
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