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Hey guys, I think after the Bid price deficiency BWOW fell into an abyss. Yes the past quart(s) has been touch but the diversification may take some time to show some real tangible returns.
Here are the 2 emails back from april & may this year for your review.
Aubrye Harris-Foote aubrye@wowjoint.com
Apr 26
to maXXXXXXXXXXXXX
Mark –
Thank you for contacting us. We are definitely talking with legal counsel to explore ways to remain on NASDAQ. The company does want to remain on NASDAQ, however if that is unsuccessful, the company would move to OTCBB so your shares would still be traded on the open market.
We are also very focused on the company and trying to demonstrate our belief in Wowjoint’s future. That’s why the company has had executives buying stock, we issued a share dividend and we are actively pursuing new business so we can continue to announce contracts like the one in Malaysia. We hope that our continued focus will eventually push us beyond the “China stigma” that has unfortunately occurred in the marketplace.
If you have any other questions, please let me know.
Best regards,
Aubrye (Harris) Foote
Vice President, Investor Relations
Beijing Wowjoint Machinery, Co.
Ph: (530) 475-2793
Fax: (949) 209-2685
aubrye@wowjoint.com
www.wowjoint.com
Aubrye Harris-Foote aubrye@wowjoint.com via XXXXXXXXXXXXXX
May 15
to maXXXXXXXXXXXXXXXXXXXX
Mark –
My apologies for just getting back to you. Please know that there isn’t anything bad going on with the company or a plan to delist. We wonder why the stock has been affected in the way it has also, especially with the new contracts we’ve announced. So in reference to the overseas, yes we just signed a deal in Malaysia and one in Peru. We’re also pursuing other contracts in Latin America and here in the US, so our international sales is definitely an area of focus for us.
In reference to the infrastructure spending in China, the interesting fact is that the Chinese government hasn’t announced anything like that actually to Chinese citizens. So as of this point, they haven’t done any sort of expansion projects however ones that were on hold may recommence. There is a belief that the industry will have a boost once the new parliament is in place. So we will see if that happens once the new regime takes over. This delay in China’s spending is another reason why we focus on international expansion.
I do understand your frustration as we experience it as well. I believe we are still looped in with the negativity felt about Chinese companies. We just hope that we can continue to show that we ARE a real company and that we are here to stay.
Thank you for your support!
Aubrye (Harris) Foote
Vice President, Investor Relations
Beijing Wowjoint Machinery, Co.
Fair enough. Thank you for the clearification.
Yes it would be nice if you can find and post. Just make sure you dont include your personal email.
Thank you again.
hi guys, yes i did email with IR. she was nice and did reply on a personal level, but essentially said they had done all they could to raise the PPS and that we are caught in china-us market stigma.
this was about 6 months ago though and many destroyed china's have run back up since then.
i could look for the email this afternoon and post if it would help but its pretty old and at that time the PPS was much higher and looked not bad to go above a buck.
i am aware of the products, contracts divy, etc. those were the reasons i averaged in over time.
im not bashing, im just frustrated because with real news, income and business, it fell off a cliff and nothing has moved it. i know it can still fix itself in a day or 2 if they bring in volume and let it go.
anyhow, have a good day all.
thanks, mark~
It never stops amazing me when people complain like that. You would think he would have cut his losses and moved on. I mean really what is the point of negative comments like that, what is he hoping to accomplish?
So you choose to be negative, when there is a lot out there on this company. You are so heavy in it. Why not push for news. What exactly would you like to see in the company, What would restore your faith? Have you contacted them to get a better idea of what is going on?
Honestly, if you are in this so heavy you may want to be positive.
What a TURD. 5+ months rotting away while the market goes up every day. Indices up between 105-145% since March '09.
This thing... dead, forgotten down at all-time historic low PPS and reaching the end of extension before kicked to the pink sheets.
If i wasn't in this heavily, it would have had one of those old spike days up to 2, 3, or even $4.00 bucks by now. Instead, my $$ is GONE. Have to look at it as a lottery ticket now, zero or big.
Such a low-float, they coulda ran this so many times already with a little volume. Not one single catalyst has moved this in 5 months. very sick. Hopefully not another $LGFTY
Murphy's Law.
Dead.
Quiet. Will be nice to see what is to come. Monday should be interesting.
Well put and I could not agree more.
Actually its no secret. Nasdaq publishes a list of stocks that are "out of compliance". BWOW fell below $1.00 for 30 consecutive days. Nasdaq provides a certain period of time to cure (get the Bid price at $1.00 or above for 10 consecutive days) and its late October for BWOW. If the fundamentals of a company are good but the stock price is low, it may be a great time to pick up stock.
I think that has been brought up a few times already. It would be nice to have it easily accessable.
Those vehicles are so cool looking. They look HUGE. Does anyone have any ideas on the margins they get on those?
Sounds like this is a new type of trading or buying strategy. Like treasure hunting. I would like to know more please share with us.
BWOW is No. 7 on most active boards on Investors Hub today. Now everyone is gone. Are you hot for another stock today?
What does all of this mean? I never heard of this before.
Yes, I see it. Lots of good data. This helps a bit too.
This is exactly what brought to BWOW. Nasdaq has a rule, if the stock's Bid price drops below $1.00 for 30 consecutive days it will be deficiency. To cure its deficiency the Bid price has to close at $1.00 or above for 10 consecutive days.
Check out this, just give you an idea how huge their business is. http://www.wowjoint.com/english/lease.asp
BWOW is NASDAQ but it's price is so low. What gives? No investigation, no stock halt, no bad accounting, and no funny business. Doesn't add up.
This is being worked on. A few people have calls into IR. Its a Chinese things. BWOW is a construction business and it probably kills them to even have a web site.
It's a very specialized business and not too many competitors. Sounds as if they have the government funding future projects that will need BWOW service.
Their three main product lines are Special Carrier,Tyre Tolley, Launching Gallery
Ok, that makes sense
I disagree because it's a US public company. If it was a private Chinese company then I would agree with you.
Actually in China, big company like that wont put their management team info on the website. I know it's hard for your Westerners to understand
Actually in China, bid company like that wont put their management team info on the website.
Yes, I can see that. Lots of good information. But no news to bring the energy for today and before the market open.
I am very interested in the management team and share structure.
I like the idea of the company being proactive and looking outside China for business before the economy slows. The management team is very seasoned and impressive.
Not to mention less than 10 million shares outstanding.
Cuz here is HOT
No, I am not work for them, because I am Chinese, so I can read Chinese. That's why i can find more info than you, man. go learn some Chinese
I myself got drawn in by the low float on it. I love low float stocks. Taking a look at the financials and news it looks like there is a lot of potential here.
It's all there. Just read it slowly. I do the same thing then realize if I read slowly I find more information.
I think that is in Florida. Very cool information. Thank s for sharing.
I read the financials and you are finding more than me. Do you work for BWOW? If so, please share more details.
I am searching right now, and I just found out that they even sold products to USA. Check this out ----Lee Roy Selmon Interchange project
Maybe we can try getting a hold of them and see if they can do that. It would be nice to see the new information up there. I have no idea how to be a moderator
No moderator. I work full time and don't have time or the knowledge to do it. Nevertheless it does need updating. Maybe the IR department would do it?
What do they have going on in the Middle East? I see some of the other projects.
True. Too many Chinese companies got into hot water over disclosure (or lack of).
Sure, I get that. Different ways of business.
Yes but that attitude can scare people. Full discloser makes people comfortable. While they ahve full disclosure it is always better if the information is easily found.
It's a Chinese thing, hard to explain, in one word, they just want to get business and make money silently, dont want to get too much attention from Chinese public media and people
It would be nice if the information on the top of this page would be updated. I know the news feeds are current but it looks like most of the other stuff is a bit old.
You missed my post - China’s recent $586 B economic stimulus package earmarks $250 B for transportation infrastructure.
That is all part of the $1T that I was talking about. Good to see they actually earmarked a good portion of it now.
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My projected scenario for banking on CFQWF:
Does that seem so unreasonable?
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warrant terms (about 7.3M are o/s):
We consummated our initial public offering of 3,750,000 units (the “ Units ”) on May 21, 2008. Each Unit consists of one ordinary share, $0.001 par value per share (the “ Pu blic Ordinary Shares ”) and one warrant (the “ Public Warrants ”) entitling the holder to purchase one Public Ordinary Share at a price of $5.00 commencing the later of the completion of a Business Combination and May 15, 2009 and expiring four years from the effective date of our initial public offering. The Units were sold at an offering price of $8.00 per unit, generating gross proceeds of $30,000,000. The Company may redeem the Public Warrants, at a price of $0.01 per Public Warrant upon 30 days’ notice while the Public Warrants are exercisable, only in the event that the last sale price of the ordinary shares is at least $10.00 per share for any 20 trading days within a 30 trading day period ending on the third day prior to the date on which notice of redemption is given.
Immediately prior to our initial public offering, we completed a private placement of warrants to various investors. The investors purchased warrants exercisable for 1,944,444 ordinary shares for an aggregate purchase price of $1,750,000, or $0.90 per warrant share. The warrants have an exercise price of $5.00 per warrant share. Of that total, a warrant to purchase 305,556 shares was sold to Ralco Capital Limited, an entity owned and controlled by Mr. Hao, our current chief executive officer, and warrants to purchase 305,556 shares were sold to Rising Year Group Limited, an entity owned and controlled by Ms. Ni, our current chairman.
Highlights:
-- Wowjoint is at the forefront of China's expanding infrastructure
construction equipment industry, providing end-to-end solutions for
infrastructure projects including railways, subways, highways, bridges,
and ports
-- Wowjoint benefits from China's 4 trillion (US$588 billion) stimulus
package, of which over $250 billion is dedicated to transportation
infrastructure projects
-- Strong financial performance, consolidated revenue for year ended
August 31, 2009 was US$44.6 million, a 23.2% increase from 2008; net
income for year ended August 31, 2009 was US$9.7 million, a 148.4%
increase from 2008
-- Wowjoint projects consolidated revenues of US$50-US$55 million for year
ended August 31, 2010, with net income of US$11.5-US$12.5 million
-- Access to public markets will help Wowjoint to expand product lines,
serve new end markets, expand internationally and take advantage of
other strategic opportunities, providing enhanced growth prospects and
diversification
-- Transaction combines Wowjoint team's operational and technical
strengths with China Fundamental team's successful track record in
growing public companies and creating shareholder value
-- Long-term commitment -- Wowjoint's management to maintain stake,
agreeing to four-year lock-up for 85% of their shares
China Fundamental Acquisition Corporation (OTC Bulletin Board: CFQUF; CFQCF; CFQWF) ("China Fundamental"), today announced that it has entered into a definitive share purchase agreement to acquire Beijing Wowjoint Machinery Co., Ltd. and its associated companies (collectively "Wowjoint"). Wowjoint is a leading solutions provider and manufacturer of specialized heavy duty lifting and carrying machinery in China, deployed primarily in the construction of railways, highways, subways, bridges and ports. The transaction provides China Fundamental investors with a unique opportunity to participate in a fast-growing company which benefits directly from the rapid development of China's transportation infrastructure. It also provides Wowjoint with enhanced access to public markets, helping it to expand product lines, enter new markets, expand internationally and pursue other strategic opportunities.
Wowjoint's current management team will remain in place to run the business following the business combination.
Following the business combination, the combined company will change its name to Wowjoint Holdings Limited and will seek to list on the NASDAQ Global Market, although there is no assurance that the listing will be approved.
Key members of Wowjoint's management will align their interests with the public shareholders of China Fundamental by agreeing to not transfer 85% of their shares in China Fundamental for four years.
The closing of the acquisition is subject to customary closing conditions, including approval of the acquisition agreement by holders of a majority of China Fundamental's outstanding ordinary shares. In addition, the closing is conditioned on less than 35% of the ordinary shares held by the shareholders of China Fundamental voting against the acquisition and electing to redeem their shares into cash from the trust fund established in connection with China Fundamental's initial public offering.
Transaction Summary
Under the terms of the definitive agreement, Wowjoint's shareholders will be issued an aggregate of 5,700,000 ordinary shares of China Fundamental in exchange for 100% of the outstanding shares of Wowjoint. Assuming a 35% redemption and no exercise of China Fundamental's outstanding warrants, Wowjoint shareholders will own approximately 60% and China Fundamental's current shareholders will own approximately 40% of the combined company following the acquisition. The calculated purchase price paid to the Wowjoint stockholders for 100% of their outstanding shares would be approximately US$45.6 million assuming approximately US$8 per China Fundamental share, excluding any issuance of earn-out shares. Assuming 35% of China Fundamental's shares are redeemed, there would be a total of 9.53 million shares outstanding. If all 7,264,756 outstanding warrants of China Fundamental were exercised, a total of 16.80 million shares would be outstanding on a fully diluted basis or a total of 12.25 million ordinary shares outstanding using the treasury stock method.
Earn-out Shares
In addition, 500,000 ordinary shares of China Fundamental will be issued to Wowjoint's major shareholders when certain share price targets are achieved or exceeded (the "earn-out shares"): (i) 200,000 earn-out shares in the event that the closing price per share is at or above US$10.00 for 180 days out of 360 days during the period from the acquisition closing date to the second anniversary of the closing date; (ii) 200,000 earn-out shares in the event that the closing price per share is at or above US$13.80 for 180 days out of 360 days during the period from the acquisition closing date to the third anniversary of the closing date; (iii) 100,000 earn-out shares in the event that the average daily trading volume is no less than 200,000 shares for three consecutive months during the period from the closing date of the acquisition to the second anniversary of the closing date. The 500,000 earn-out shares excludes the possible issuance of an additional 2,800,000 ordinary shares if the funds left to the combined company following the closing are US$1,250,000 or less.
Business Overview
Wowjoint is a growing force in the construction machinery industry in China, specializing in the design, engineering, manufacturing and service of customized heavy duty lifting and carrying equipment used in large-scale infrastructure projects such as railway, highways, bridges, viaducts, subways and ports. The company's main products include launching gantries, tyre trolleys, special carriers and marine hoists, with Wowjoint holding a leading market position in China in each of its major product lines.
Wowjoint's business model is to provide a complete end-to-end solution that handles all aspects of market research, custom design, engineering, manufacturing, installation and maintenance. Since its inception in 2004, Wowjoint's equipment and designs have been deployed in high profile infrastructure projects across China, including the construction of approximately 5,600 kilometers of rail track. Recently, Wowjoint has also successfully expanded into the European Union market.
Wowjoint's strong in-house design capabilities are evidenced by the award of six critical patents and protected statuses on three proprietary products, including its integrated launching gantry. Its integrated launching gantry combines the functions of a special carrier and launching gantry into one, and is designed for mountainous regions and tunnels, with the capability of reducing construction costs and construction time. Wowjoint's strong design capabilities enable it to satisfy the constantly changing needs of its customers, which include some of the largest construction conglomerates in China including China Railway Construction Corporation Limited (CRCC), China Railway Group Limited (CRG) and China Communication Company Limited. Wowjoint's established relationships with these customers not only provide access to key infrastructure construction projects, but also valuable insights into government policies regarding the transportation infrastructure industry.
Wowjoint's key financial data, stated in accordance with U.S. generally accepted accounting principals ("U.S. GAAP"), are set forth below:
Selected Financial Data
(US$'000)
Year Ended August 31,
2008 Audited 2009 Audited
Income Statement
Total revenue 36,233 44,622
Operating income 6,055 13,323
Net income 3,939 9,784
Balance Sheet
Cash and cash equivalents 1,438 1,895
Accounts receivable 12,728 14,447
Total current liabilities 25,537 11,977
Total long and short term debt 730 731
Financial Outlook and Transaction Metrics
As a result of China's economic stimulus package and consequent large-scale infrastructure investment, Wowjoint sees continued strong demand for heavy lifting and carrying equipment in fiscal 2010. Wowjoint projects consolidated revenue of approximately US$50-US$55 million and net income, excluding one time charges and stock compensation expenses, of US$11.5-US$12.5 million for the year ended August 31, 2010.
Wowjoint primed to benefit from sustained boom in China's infrastructural development
"We are very pleased to announce the acquisition of Wowjoint today," stated Ms. Hope Ni, Chairman of China Fundamental. "China's RMB 4 trillion (US$588 billion) stimulus package, of which over US$250 billion is dedicated to transportation infrastructure projects, combined with the very substantial government budget already earmarked for such projects, is contributing to a new boom in infrastructural development." Ms. Ni continued, "Between 2009 and 2020, the Chinese government is planning to build 33,000 kilometers of new rail tracks and 37,000 kilometers of new highways, resulting in an estimated combined spending on railways and highways exceeding US$500 billion. This ramp up in infrastructure construction creates significant demand for customized equipment and machinery. Despite the challenging economic climate, we expect these growth drivers to continue, as evidenced by China's ongoing commitment to infrastructure build-out. As a domestic market leader in heavy duty lifting and carrying equipment, Wowjoint is poised to capitalize on the expected increase in demand and further strengthen its competitive position in the market."
Mr. Yabin Liu, CEO of Wowjoint, said, "Wowjoint and its employees are excited about the business combination with China Fundamental. This transaction expands our shareholder base and provides Wowjoint with additional resources to aid in our growth. With improved access to the capital markets, as well as the track record of China Fundamental's management in growing public companies, we are further able to propel the company forward through expanding product lines, serving new end markets, expanding internationally and assessing accretive acquisition opportunities. We will focus in particular on adding to our product offerings in maintenance vehicles, as demand scales up along with infrastructure construction. Our team will also strive to broaden our established blue-chip customer base and further nurture our relationships with existing clients, positioning us to take advantage of future opportunities in the industry."
"We believe that the investment in Wowjoint is compelling for a number of reasons," stated Mr. Chun Y. Hao, CEO of China Fundamental. "First, we are combining with a fast-growing company in a key industry that will benefit from China's rapid economic growth and accelerated infrastructural development. Second, Wowjoint's management team is very experienced, with an average of 22 years of industry experience and a track record of great success. Third, we are investing in Wowjoint at the inflection point of its evolution, as it seeks resources and opportunities for enhanced growth both in China and abroad and diversification in the customized infrastructure equipment industry. Fourth, the company's proprietary technologies and impressive R&D capabilities bode well for future growth." Mr. Hao continued, "Last, there are no selling shareholders in this transaction, validating our belief that Wowjoint is poised to create meaningful shareholder value going forward, as the company grows with China's increased scale of infrastructure. The transaction combines the operational and technical skills of Wowjoint's team with the financial and management skills of China Fundamental's team."
About China Fundamental Acquisition Corporation
China Fundamental Acquisition Corporation is a special purpose acquisition company formed for the purpose of acquiring, through a merger, share exchange, asset acquisition, reorganization or other similar business combination, or contractual arrangements, an operating business, or control of such operating business, that has its principal operations located in the People's Republic of China, including Hong Kong and Macau. China Fundamental completed its initial public offering on May 21, 2008.
About Wowjoint
Wowjoint is a leading provider of customized duty heavy lifting and carrying machinery used in such large scale infrastructure projects as railway, highway and bridge constructions. Wowjoint's main products lines include launching gantries, tyre trolleys, special carriers and marine hoists. The company's innovative design capabilities have resulted in patent grants and proprietary products. Wowjoint is well positioned to benefit directly from China's rapid infrastructure development by leveraging its extensive operational experience and long-term relationships with established blue chip customers.
Information on Wowjoint's products and other relevant information is available on its website at http://www.wowjoint.com
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