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VODG(.15)...stem cell-derived food.....
The two announced business relationships that VODG has attracted in the last 4 months or so are pretty interesting, IMO.
With the addition of an investment banker to VODG's Board of Directors, and the CEO's mention in his May 18 shareholder letter that the strategic alliance VODG and HemoGenix have formed "may lead to an appropriate business combination", I think the possibility of some merger/acquisition activity involving VODG has significantly increased.
The contract with Mokshagundam Biotechnologies expands the use of VODG's products/technologies beyond just the medical arena. VODG's cell culture media and cellular immortalization technology could ultimately find its way into the commercial production of stem cell-derived meat for consumption by animals/humans.....
Dr. Jim Musick, Vitro’s CEO said, “We are pleased to be involved with this ground breaking opportunity to extend stem cell technology to development of alternative food sources. Cellular immortality as reflected in continual stem cell proliferation (self-renewal) has potential to provide limitless cells that when differentiated to muscle, for example, become the primary ingredient of meat. This reflects the basis of alternative food derived from stem cells that is now being developed. We intend to use our expertise in stem cell media development and commercial manufacture to provide appropriate media formulations to support this nascent technology. Our VITROGROW™ Brand of stem cell media has been demonstrated to result in superior performance to competing products in the growth of human adult stem cells and is now utilized in high performance, bioluminescent test kits (Lumenesc-Hu™ and LumiSTEM™) for measuring the quality and potency of mesenchymal and induced-pluripotent stem cells. We anticipate contributing to this exciting new field and plan to further develop cellular immortalization procedures that may be crucial to economic production of stem cell-derived meat.”
http://www.vitrobiopharma.com/investorrelations/press22.html
This is a link to Kedar Challakere's (Mokshagundam Biotechnologies) patent application......
http://www.wipo.int/pctdb/en/wo.jsp?WO=2010068897&IA=US2009067721&DISPLAY=DESC
Fuzhou job ads...another reference to listing.....
Job advertisements for the financial department at the Fuzhou project have started to appear. There also is another "U.S. NASDAQ listed company" reference in the company description of the ads.......
Pharmaceutical Co., Ltd. Jiangxi Sheng Yongsheng matter w as the U.S. NASDAQ listed company housefly biological industry in China wholly owned subsidiary of the holding company and rely on a strong scientific research strength of Daqing Morinaga housefly Biological Engineering Technology Development Co., Ltd. as the parent company, is a professional R & D , production, sales housefly biological activity of protein family of high-tech medical products biomedical enterprise. Companies adhering to the "science and technology to create a healthy, professional win the trust" stand Division purposes in order to maintain standardization and internationalization of high-standard concept as a guide to research for product Dao Xiang, Qi Ye development of all technologies are independent Zhishichanquan, existing national Famingzhuanli 4, and an annual increase rate of reported 1-2.
Pharmaceutical Co., Ltd. is located in Jiangxi Sheng Yongsheng property of artificial neural network ask the North Industrial Park, with a total area of 309 acres, a total investment of 210 million yuan to build the housefly biological activity of protein bio-pharmaceutical industrial park, relying on research and development of the parent company for eight years results, has the world's most advanced housefly biotransformation protein, bio-pharmaceutical technology to produce clinical nutrition protein, protein non-medical nutrition, skin care products, drugs, burns four major categories of 15 varieties, and all products are the raw materials from insects - Musca domestica protein. Project is fully completed, may form a total output value of 1.5 billion yuan turned over to the scale of profits and taxes 80 million yuan.
http://tinyurl.com/2fub2mw
OT: GNZR/SCNG.....
"Potse, are you aware of SCNG relationship to GNZR? Big name posters say SCNG should be at .50 right now. Your thoughts?"
Yes, I am aware of the relationship. From a purely trading/flipping perspective, SCNG might provide better opportunities to make money because of the volatility, versus just playing GNZR itself.
However, I think it would only be prudent to approach both stocks with a healthy dose of "awareness" regarding the situation with the SEC charges against one of GNZR's debt holders (see post I am responding to). Until GNZR CEO Matthew Krieg completely cuts all ties between himself/GNZR and Seven Palm Investments, and provides some logical insight into his handling of this convertible debt, I think it is wise to be a little bit cautious.
Regarding SCNG specifically: As far as I am aware, nobody really knows for sure exactly what the share structure, financial, and fundamental picture looks like at this moment in time. When SCNG stopped filing in 2006, the company was in a pretty messy financial condition. Debt, convertible debt, litigation judgement default, etc.
So to place a price target on SCNG is difficult because I have no idea how all of the above issues were resolved in the following years, and to what extent (if any) the retail shareholders of SCNG actually benefit from the value of those GNZR shares that SCNG received. For example, according to the last quarterly report in 2006 the preferred shareholders have liquidation preferences. So, that is something I would be a little concerned about until someone at the company can clearly define the current financials and structure of SCNG.
CFO advertisement...some private message items.....
Chief Financial Officer: About two weeks or so ago Daqing Morinaga placed an advertisement for a CFO. About 3 days ago that ad was removed. I view this as a potentially good sign that a RM may be fairly close to occurring (I'm personally expecting sometime here in July/August). Quite often in China RMs you see a new CFO brought in around the time of the merger or prior to an uplisting to a major exchange.
The job description section of the ad mentioned that Daqing Morinaga is a "listed company".
IDCX reverse merger: My hope is that the CDBH RM will be structured in a similiar fashion as to some of the other recent Belmont China RMs (10M outstanding shares). So, the IDCX reverse merger on Friday does raise a little concern in my mind because the RM departs from that 10M structure trend that had been established on Belmont plays.
Frankly, after reviewing the IDCX merger/fundamentals I am a little surprised/puzzled that they would structure that deal with 50M shares from the get-go. Generally speaking, when a shell undergoes a share reorganization (reverse split) you would like to see the RM structured in a fashion that makes it relatively easy for the company to reach and maintain the minimum price for uplisting. Otherwise, you might have to go through the time/effort/expense of doing another reverse split. I would have thought that IDCX/Belmont would have tried to keep the share count lower to make the price/structure/fundamentals more easily conducive to uplisting.
GNZR: No, I sold my entire position in that stock when it made its move over the dollar mark. My comfort level with the management team at GNZR is rapidly approaching zero (on a scale of 1-10). The fully-diluted share count and some of the financial/business decisions at the company are not particularly encouraging, IMO.
As you are probably aware from my April posts on that board, I was uncomfortable with the conversion price of the debt not getting adjusted higher along with the reverse split. It was puzzling to me that CEO Matthew Krieg seemed willing to accept/embrace/nurture that convertible debt, when he could have simply wrote a check and paid it off.
It turns out Seven Palm Investments (a 50% owner of the convertible debt) and its CEO Peter Veugeler are in a heap of trouble with the SEC (see links below). So when I saw in the quarterly report that some of the debt had been converted into shares, and that action was eventually followed by a one-week stock promotion campaign, I pretty much have seen enough. The disclaimer I recall seeing from some Atlanta-based promotional firm claimed that it had received compensation directly from GNZR.
Any future interest I have in that stock will likely be strictly from a trading/flipping standpoint.
http://orlando.bizjournals.com/orlando/stories/2010/05/03/daily27.html?jst=pn_pn_lk
http://www.courthousenews.com/2010/05/06/27055.htm
Fuzhou project, other items.....
"CCKH is a complete POS. 1 for 46 reverse split? Maggot factory? You must be seriously deranged if you think any institutional investor is ever go to buy a maggot-selling POS like this. If I were you I would dump my shares at 10 cents and be happy to be out of this thing."
My understanding (based on news snippets and items on government websites, see links below) is that the Fuzhou project (the "maggot factory") is expected to be completed and commissioned this year.
Relevant information regarding the project.....
1) 300 acres
2) 180 new jobs
3) $31M -- total cost of the project
4) $221M annual revenue capability
5) $47M annual net income capability (assuming 25% tax rate)
If I am correct in believing/assuming that the RM will have an initial 10M or less outstanding share structure, $20M financing at $5 or higher, and Belmont retaining 1M shares or less, the fully diluted share count should be in the 15-20M area (including warrants).
Based on the revenue/income potential and the nature of the current and potential markets/products, my hunch is that Daqing Morinaga probably is not going to have difficulty attracting institutional investments over time. And with the low float, my hunch is that with a little patience I will have opportunities to sell at a profit rather than take a loss (my average price is under 26 cents -- under $12 post-split).
But that is just my opinion/viewpoint, not shared by many others.
Reference to the 180 new jobs, completion date, etc......
Evening News on January 15, materials Pharmaceutical Co., Ltd. Fuzhou Sheng Yongsheng Lin Chuanqu ask the North Industrial Park in the foundation-stone laying ceremony was held. The company is specialized in the housefly insect activity of protein in the field of applied biological technology research and development, production and sales of high-tech bio-pharmaceutical company, Total investment 210 million yuan, covering an area of 300 acres. A project completed and commissioned at the end of this year, after completion of the project can realize annual output value of 1.5 billion, profits and taxes 80 million yuan, 180 new jobs.
http://tinyurl.com/2ckw8jf
The following is from a government website that lists/describes projects in the province where the Fuzhou project is located. This item is of interest because it was listed in the section of projects in Fuzhou that have actually started construction, which basically confirms that the project is in fact real and underway. The link below will take you directly to the specific item of interest, rather than having to scroll through the various projects.....
March 4, by the U.S. NASDAQ listed company in China holding company, housefly biological industry in Fushun investment in the North Industrial Park, Fuzhou Sheng Yongsheng material Pharmaceuticals housefly biotransformation protein, bio-pharmaceutical projects started, a total investment of 210 million yuan. After completion of the project is expected to be realized main business income of 1.5 billion, tax 80 million yuan.
http://tinyurl.com/2dxezwt
Medical products/devices: If you go back to post #189, there is a item that mentions Daqing Morinaga's products/technologies in a broad sense: "clinical nutrition protein, non-medical nutrition protein, skin care products, drugs, burns four major categories of 15 varieties of products".
I don't know whether the medical device types of products are currently in the company's commercial offerings or whether they are still working through the pipeline but clearly the company has been working on things beyond just the nutrition/cosmetics side of the business.
The following is from a word document that I found some time ago, located on an educational institute's website. The link to the actual document no longer functions, but I was able to find another source. If I recall correctly the date on the original document was 2006, but it is possible this is from sometime between 2006-2008. Basically this was an item about a research project that Daqing Morinaga was doing to take a more microbial approach to the extraction/production of chitin......
As the marine coastal zone of the large area of industrial pollution, bringing the quality of chitin severely affected, very difficult to develop Medical grade products. Insects are rich in chitin, through artificial cultivation of the control environment and the extraction of science can be consistent with the requirements of medical and food products of high purity chitin.
The project purified insect chitin product covering pharmaceuticals, pharmaceutical intermediates, aerospace and military field first-aid field, has developed sophisticated technology, including: biological surgical sutures, artificial skin, surgical dressing, battlefield first aid bandages to stop bleeding, biological fungicide, biological preservatives.
http://tinyurl.com/2bm8fb7
Crone Law Group: Although there is nothing in the SEC filings to verify this, it is highly likely that The Crone Law Group (Mark Crone) will be the legal representative for the RM. Crone has been representing many of the recent Belmont China reverse mergers, and the firm reserved the "China Domestica Bio-Technology Holdings" name. Crone would likely handle all of the legal matters related to the SEC and the $20M financing......
http://tinyurl.com/22ocv4y
temp...CCKH's filings.....
"I just realized:
These guys are late on their quarterly filings.
Kind of a waste to pay all that for a reporting shell, and then stop reporting. I know: the merger might make the accounting a bit tedious."
I believe CCKH's filings are currently up-to-date. The CCKH fiscal year ends in March, so the next required filing is the 10-K, which is not due until the end of June (or mid-July, with an extension). So the annual report will probably show up sometime in the next couple of weeks.
In my next post, I'll respond to some private messages/comments I have been receiving.
Job website mentions CCKH symbol......
A second reference connecting the "CCKH.ob" symbol to Daqing Morinaga now appears during searches of Chinese websites. This is the company description section of a Chinese job website (Fuzhou is where Daqing Morinaga's huge expansion project is located).......
Fuzhou Sheng Yongsheng matter housefly Biological Pharmaceutical Co., Ltd. is the industry's immediate holding company subsidiary, is specialized in the housefly insect activity in the field of protein in the application of biomedical R & D, production and sales of high-tech biological pharmaceutical enterprises. China's biological industry holding company Fly now on the NASDAQ (NASDQ) successfully listed (Stock code: CCKH.OB). Companies adhering to the "science and technology to create a healthy, professional win the confidence" of the business purpose, adhere to standards, the state's high standards of philosophy as a guide, product-oriented scientific research, patents, technology, innovation, relying on high-technology industries development. Leaders at all levels and relevant departments in Fuzhou great help and care, we Pharmaceutical Co., Ltd. Fuzhou Sheng Yongsheng things will play at home and abroad caused by insect activity of protein high-class biopharmaceutical manufacturers.
http://tinyurl.com/25mthj6
99.9%, Nasdaq listing.....
Reply to some private messages.....
99.9%: There have been instances in the past where the identity of the China company vended into a shell turned out to be different from what I was expecting. Which is why I am only 99.9% certain Daqing Morinaga is the RM candidate, rather than 100% certain.
For example, SCLX (coal water) was originally suppose to have been vended into a certain shell. Everything was set to go, however just prior to the RM the Chinese management team made a trip to the United States and at that time the consultant made a basically last minute/week decision to switch shells.
What makes CCKH somewhat unique versus other types of situations I've seen/experienced in the past is that there are corporate actions and SEC filings that are actually helping confirm in my mind that Daqing Morinaga is the RM candidate. In past situations, the information on the Chinese websites was usually the only thing I could rely on (China company A is reverse merging with Shell B). However, with CCKH we not only have the information that can be found on the Chinese websites but we have US-based actions/filings that seem to heavily support that information.
IMO, so far everything appears to pointing toward Daqing Morinaga.....
1) The name change to "China Domestica Bio-technology Holdings" has an obvious reference/application to the term "housefly".
2) The name of the BVI holding company that purchased the shell has an obvious similiarity to what I believe is the name of the mainland China company that controls Daqing Morinaga.
3) The controlling person of both the BVI company and DM are the same person.
4) The date on the news item in the post I am responding to corresponds nicely with the dates on the sale of the CCKH shell and the accompanying 8-K filing.
5) And, of course, that Chinese Chamber of Commerce website in March specifically mentions CCKH (see post #189)......
China Fly biomedical holding company is specialized in housefly insect active protein in the field of applied biomedical R & D, production and sales of high-tech biological pharmaceutical enterprises, the company of "science and technology to create a healthy, professional win the trust" business purposes, adhere to standards, the state of the high standards of philosophy as a guide, the product-oriented scientific research, patents, technology, innovation, relying on high-technology industries development. Company in the U.S. Nasdaq (NASDQ) successfully listed, listed code: CCKH.OB): Headquartered in Shenzhen, the company invested in 330 million yuan in Fuzhou, Jiangxi Fuzhou Sheng Yongsheng materials Pharmaceutical Co., Ltd. was established to build national CD the activity of a protein biomedical industry park.
Nasdaq listing: The language in the above news snippet and that Chamber of Commerce website is consistent with what I usually see. Chinese websites quite often refer to a reverse merger with a Bulletin Board shell as being "successfully listed on Nasdaq". I don't think it is something done to intentionally deceive investors; it is just sort of an idiosyncrasy you become accustomed to when dealing with China reverse mergers.
temp...insect-based commodities.....
"Do you think they might be able to produce trehalose as a by-product of their protein extractions? I am certainly confident that valuable commodities can be extracted from insects. It's just might be a tough sell to those inexperienced in biochemisty."
I don't know the entire extent/range of materials they are producing. The 2008 newspaper article I posted about earlier (#314) provides some market prices on the protein/chitin they were extracting. $4,985 per kg of larvae......
1 kg of fly larvae, and to the 20 grams of chitin, proteins 250 g freeze-dried powder, 120 grams of fat.
The current market price, freeze-dried powder protein, 1 gram is 120 yuan, 1 g of insect chitin is 200.
Only two, 1 kg of fly larvae, can turn into 34 thousand yuan.
Flies cosmetics, higher value-added. Per box 100 grams, worth 18,000 yuan.
http://tinyurl.com/2f8yvw7
Daqing Morinaga...$20M financing.....
I just ran a scan of Chinese websites a few minutes ago, and this piece of information showed up. I'm now about 99.9% certain that Daqing Morinaga is going to be the RM company. The two key pieces of information from this news snippet.....
1) The April 29 date is 3 days after the shell was sold to the BVI holding company controlled by Daqing Morinaga's CEO, and one day after the 8-K was filed.
2) According to the snippet there is (or will be) a $20M financing.
Daqing Morinaga housefly Biomedical Technology Co., Ltd. in the United States successfully listed on NASDAQ Capital Market
Source: (Enterprise Listing Office) Time: May 26, 2010
April 29, Daqing Morinaga housefly Biomedical Technology Co., Ltd. in the United States successfully listed on the Nasdaq capital market, financing 20 million U.S. dollars for the first time, now, high-tech zones listed in the domestic capital market has reached 11 companies.
http://tinyurl.com/2wanq74
Thoughts/comments on CCKH.....
I will use this post to make a few remarks on today's posts and also address some private messages I have received.
While the reverse split is higher than I was expecting (I was personally anticipating a 1:10 split), I am taking what is probably a contrarian viewpoint at this particular moment and maintaining a tight hold on my shares at these price levels. For clarity purposes, I continue to believe that Daqing Morinaga is the target RM candidate that will be vended into the CCKH so that belief is reflected in some of my comments/observations below.
Maggot factory: I completely disagree with your assertion that no institutional investor will put money into a "stupid maggot factory". Based on what I have seen of the company so far, and if the numbers associated with that expansion project are anywhere close to being accurate, I think CCKH is going to attract significant institutional interest at some point after the RM transaction is completed. The product lineup (both existing and potential) is something I think could be relatively attractive to institutional managers (clinical and non-clinical nutrition, cosmetics, transdermal medical applications, agricultural seed coatings, etc).
It is quite possible that Daqing Morinaga is already on the radar screens of US-based institutions. One of the things that immediately caught my eye the first time I looked at the translated version of the company's website is that scrolling news item section on the right side of the page. Notice the April 2007 item makes a mention of "Morgan consortium to visit our company projects". I think the odds are fairly good this is a reference to Morgan Stanley.
http://translate.google.com/translate?hl=en&sl=zh-CN&u=http://www.dqsyjy.com/&ei=FaP8S8_4HqXMMf2n_MoB&sa=X&oi=translate&ct=result&resnum=1&ved=0CBYQ7gEwAA&prev=/search%3Fq%3D%2522http://www.dqsyjy.com/%2B%2522%26hl%3Den%26safe%3Doff
Website: One of the job advertisements that Daqing Morinaga placed was for a full-time website developer, so I don't necessarily view the company's dated website to be overly alarming. I could be completely wrong in my assessment of the company, but I happen to believe the company has probably made significant strides since that 2007-2008 time period. That progress might not be easily/readily evident to the public. For example, the "company description" text in the current job advertisements (where the revenue is listed as $7M) is almost identical to a job advertisement the company placed back in late 2007.
Reverse split and Belmont structures: The split most likely means this will a "fully-valued" type of RM and thus probably significantly limits the upside (at least from a near-term perspective).
As somewhat of an aside: If I recall correctly, about 2-3 years ago China put in place a policy that was suppose to prohibit "under-valued" RM transactions. For example, if a Chinese RM candidate was evaluated as being worth $10M then in order to complete a reverse merger that Chinese company would need to receive basically $10M worth of shell shares. You would not be allowed to give the Chinese company a small number of shares worth say $1M and then let the market "naturally" correct the share price/valuation up to the $10M level.
The "under-valued" RM models are where you get the really nice 20 cent to $5 overnight types of moves. I think LNDT and SVPE are probably two good recent examples of that. Obviously that policy has been changed or the Chinese government is no longer rigidly enforcing it because I have been seeing a number of these types of deals.
Back to CCKH: It is very difficult to speculate what is going to happen here, but it should be worth noting there appears to be a trend developing in very recent Belmont China RM plays. Meuse/Belmont drops the shell shares down to the 150-300K range (DATI, ACTN, and IDCX). IDCX hasn't entered into a RM deal yet, but in the two shells which have entered into RM transactions (DATI, ACTN), he has structured the deals so that the post-merger outstanding share count is exactly 10M, and the shell shareholders retained 1.5-3% of the new company.
It also might be worth noting that both IDCX and ACTN have seen trading at $20+ post-split equivalent levels after their splits were disclosed in SEC filings (CCKH equivalent = 43+ cents per share).
Now, in these latest two deals (DTAS, CCKH) Belmont has dropped the shell shares down even further to exactly 50K. So, I am almost wondering if maybe they are looking to structure CCKH at sub-10M levels. If that is the type of share structure that develops here, it presents a potentially interesting situation. With a post-split float of about 20K, the possibility of a 10M or less post-merger structure, and the possibility of Daqing Morinaga being vended into this shell, I don't have any great urgency to sell my shares at current prices. But that is just my opinion/viewpoint.
Belmont/Meuse 5% ownership of the new company: In the other two RM deals that were entered into (ACTN, DATI), Belmont retained about 360-860K shares (3.6 to 8.6%) of the new company. In the case of CCKH, Belmont will retain 5% of the new company, post-merger and post-initial financing. If CCKH is structured in a similiar fashion (10M or lower outstanding shares), Belmont will probably retain somewhere between 500K and 1M shares.
rocketeer357...DYER/IDCX/CCKH......
I only have a free account status, and will need to respond via public post.
I did some symbol searches on DYER but haven't noticed anything yet. It is actually pretty rare that you can find the RM candidate in advance of the SEC filings, but sometimes it can be worth the time/effort. If Daqing Morinaga is vended into the CCKH shell, I've had an opportunity to do some advance research on the company and get a little sense of what might be coming here (what I've seen thus far is helping me maintain a tight grip on my shares).
IMO, from a fundamental risk/reward perspective, CCKH is the most attractive Belmont/Meuse shell play out there right now. Most of the attention has been going to the IDCX and DYER plays, and both of those plays have some pretty significant valuations already built into the share prices versus CCKH. Last week both IDCX and DYER saw valuations over $5M (4x higher than CCKH). DYER at last week's closing price of .039 is the equivalent of CCKH trading at over $2.50 per share.
KHGT(.22)...new management.....
Changes to KHGT's managment/director positions started appearing on the Nevada SOS about 3 weeks ago. I'm unsure of whether there will be an accompanying change in business direction. Gunther Than (CEO of VSYM) has been appointed as the new President. Some of the other people have backgrounds in the energy/mining industries.
IMO, given the general sub-par quality/background of the people that are being installed here it is probably unlikely that KHGT will emerge from this with a long-term viable business. But, having said that, maybe there will be some type of promotion or perhaps a forward split that attracts attention. I haven't bothered to check with the transfer agent to see if there is an updated share count available. The outstanding shares from around the time the company stopped filing (and post reverse split) was under 70k.
http://nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=0Z7s3HMa0WoL7NsOPUBvDg%253d%253d&nt7=0
DION(.12)...CEO's comments from May 2010 item.....
Some snippets from the CEO's May 2010 essay on PV MOSFET-Drivers......
1) Until recently, therefore, our strategy, partly dictated by limited capital, has been to quietly and un-aggressively exploit our long-time specialty niche. Nonetheless, word-of-mouth, plus our use of Internet-based search-engines, has brought a growing stream of new, reliability-focused customers to our door. Some of their “mission-critical” applications involve “hi-rel” military telecom, critical air-borne wing-flap motor controls, expensive automatic test equipment and large industrial power distribution systems. And high-reliability electric-car manufacturers are also looking at our PV MOSFET-Drivers for possible use in that market.
2) Our technology recently even attracted a major new investor, with significant business contacts in China, where we had earlier established 13 customers. As a direct result of our new investor’s efforts (and financial strength), we expect further meaningful sales growth in China, as well as other parts of Asia.
3) Well, let’s review how big the underlying MOSFET market is.
As stated earlier, it is estimated this year to be a staggering 25-billion units. And note that every one of them needs something to turn it ON or OFF. Of course we can never hope to get it all, or anywhere close to all, but to put some fine focus on it for you again, just 0.1 % of that market would translate into annual sales volume of $50-$75 million worth of our PV MOSFET-Drivers. Personally, I think we may be sitting on a gold mine, but previous shortages of working-capital have forced us to mine it with a tea spoon. Our new investors, however, fully recognizing our potential, are moving towards possibly putting a steam-shovel at our disposal. As we pursue increasing the market- awareness of Dionics, and decreasing the reliability-premium in the price of our high-reliability PV MOSFET-Drivers, we can only assume growth of sales volume in the future. And with it should come growth in our profits.
http://www.dionics-usa.com/PDFs/PV%20MOSFET%20Drivers.pdf
Newspaper article...interesting statement on revenue.....
Yesterday morning, ask the North Industrial Park, fireworks went off everywhere, from the U.S. NASDAQ listed company in China holding company, housefly biological industry invest property in Fuzhou Sheng Yongsheng Pharmaceutical Co., Ltd. started in the ground-breaking ceremony was held here. Municipal Committee, vice mayor Huang Mu Hong, Vice Mayor Johnson attended the groundbreaking ceremony Liu Ju.
Fuzhou Sheng Yongsheng property investment 210 million yuan Pharmaceutical Co., Ltd., covers an area of 300 acres, mainly depend on the parent company's technology as a backing. Its parent company owns the world's most advanced protein housefly biotransformation, biological pharmaceutical technology, can produce clinical nutrition protein, non-medical nutrition protein, skin care products, drugs, burns four major categories of 15 varieties of products, all raw materials are from insects - Musca domestica protein. After completion, the annual output up to 1.5 billion, and paid taxes 80 million yuan.
I think that $220M revenue number attached to the expansion project could be an entirely realistic target. I mentioned in one of my posts that the $7M revenue number that appears in Daqing Morinaga's job advertisements might be an outdated figure. A newspaper article that appears on the company's website suggests to me that the $7M number might be from just the first six months of sales after the first products were introduced into the market back in 2007.
That brings up a couple of interesting possibilities: 1) Daqing Morinaga's current level of revenue could very well be significantly higher than I initially anticipated (depending on capacity constraints). 2) If Daqing Morinaga's revenues are still relatively low, the company could on the verge of potentially explosive/sustained revenue growth when the expansion project comes online.
I'm not entirely sure but I think this Daqing Evening News article appeared in June 2008......
Product just came out, people want to "underwriting." Less than six months, Sheng Yonggong Secretary sold more than 50 million nutritious food.
http://tinyurl.com/2f8yvw7
db7...Yung Kong Chin.....
Regarding your PM: Yes, I believe this "Yung Kong Chin" is the same person who was part of the SinoCubate team prior to SinoCubate changing its incubator business plan and reverting back to a shell. Given the fact that he was going to be one of three main individuals at SinoCubate (and working alongside Phillip Wan), I think his involvement with Daqing Morinaga bodes well for the company, particularly in the areas of listing/uplisting and financial analysis.
I'm not sure how long Yung Kong Chin has been associated with Daqing Morinaga, or whether he had any significant influence in directing this company to a specific RM firm or to a specific shell. It is possible that Belmont might have signed up Daqing Morinaga as a client, and then brought in Yung Kong Chin at some later point (perhaps recently) to assist on the listing and company development.
temp luvs amy...Meuse 10% ownership.....
"And if you expect that his Lawyer is some sort near-deity personna, you have a lot to learn about lawyers."
I'm not exactly sure why you seem to be so irritated over an issue that I don't believe is a problem. Or at least not a problem of any significance that should influence an investor's buy/sell decision on this particular stock.
Sure, everybody makes mistakes. Including lawyers. But given the lengthy history Belmont/Meuse has regarding RM-related filings, I think it is only reasonable to assume that Belmont has a pretty good knowledge base regarding SEC filings. So, it might not be prudent to just jump to conclusions and immediately assume a mistake has been made on the Form 4 filing.
"His form 4 shows a clear mathematical error. It states that he is a "10% owner" and that he holds "ZERO shares""
Not necessarily. It is highly likely that Belmont is going to retain a 10% ownership in the RM. My guess is that as part of the RM transaction the China RM target will be obligated to issue at least a 10% ownership position to Belmont (similiar to what the IDCX RM/transaction requires). Notice in the IDCX filings that Belmont is listed as a 10% owner, even though it technically doesn't own any shares yet.
Therefore, it is entirely possible the SEC requires that Belmont identify itself as a 10% owner of CCKH as a result of a contractual obligation with the RM company.
temp luvs amy...Meuse/CCKH filings.....
"I just reviewed meuses Form 4, and he checked the box that says he is still an officer, and typed in that he is still the president. Maybe someone should call him and ask why he hasn't filed anything else? Technically, if he was no longer an officer, the Form 4 didn't need to be filed, which made me re-read it. If he gave up the officer/director posts, his final filing should be a 13D/G."
I don't see anything in the Form 4 that would prompt me to call Belmont/Meuse and question his filing activity. This particular filing (and the information in Box #5) is consistent with other similiar Form 4 filings on RM/transactions he has made over the years (including the DTAS filing last week).
If there was anything wrong with the way Meuse handles the filings on his RM/transactions, it is likely that the SEC already would have brought it to Meuse's or Belmont's lawyers attention at some point over the years.
CCKH Form 4 (4/21/2010).....
http://knobias.10kwizard.com/filing.php?param=&ipage=6900525&DSEQ=1&SEQ=&SQDESC=SECTION_INSIDER&exp=
CCKH...trading at a discount to other Belmont plays.....
I think it is worth noting again that CCKH continues to trade at a significant discount to the valuations on other Belmont China-related plays.
If you look at the valuations of the shell shares on Belmont's recent China RM/transactions, you will notice they are currently trading at valuations that at least 2x higher than CCKH. Shell share counts on those other Belmont plays range from 3.5-30x higher.......
IDCX (.06) 68.2M shares, $4M market cap
DATI (.50) 8.1M shares, $4M market cap
ACTN (.10) 18.7M shares, $1.9M market cap
CCKH (.35) 2.3M shares, $800k market cap
Daqing Morinaga...expansion, job advertisements.....
Fuzhou Sheng Yongsheng property investment 210 million yuan Pharmaceutical Co., Ltd., covers an area of 300 acres, mainly depend on the parent company's technology as a backing. Its parent company owns the world's most advanced protein housefly biotransformation, biological pharmaceutical technology, can produce clinical nutrition protein, non-medical nutrition protein, skin care products, drugs, burns four major categories of 15 varieties of products, all raw materials are from insects - Musca domestica protein. After completion, the annual output up to 1.5 billion, and paid taxes 80 million yuan.
Part of the reason I believe the above information may be somewhat accurate and that Daqing Morinaga is currently undergoing a significant business expansion: There appears to be a very noticeable increase in the level of job advertisements coming from the company.
During the month of April, Daqing Morinaga has placed ads for 20 people in the Marketing/Sales department at their headquarters, an account manager, 3 designers (mechanical design, etc) to work at their new production facilities, a construction manager, and interns.
DesertRat1...expecting RM with Daqing Morinaga.....
"Potse, what are your thoughts? Do you think that changes the whole "China Domestica Bio-...." plan? What are the odds that's still on? Probably wont know until the 8K."
Standard operating procedure on a Belmont RM transaction is for Belmont to sell majority control of the shell. So Belmont's sale of the CCKH shell strongly suggests that CCKH has probably completed a RM, or the shares have been placed in the hands of an intermediary person/entity close to the eventual RM candidate.
My best guess is that the 8-K filing will disclose that a RM with Daqing Morinaga (see post #194) has been completed. While it is always possible that general plans or specific RM targets may have changed in the last few weeks/months, I will be mildly surprised if you don't see some sort of China-based biotech/pharma fill the CCKH shell. It would seem unlikely that Klinicki/Meuse would have gone through the time/effort to change the name of the company to "China Domestica Bio-Technology Holdings" unless they were pretty sure of what kind of company would be brought into the CCKH shell.
I'm probably about 99% sure the RM candidate is Daqing Morinaga. If the initial clue on that Chamber of Commerce website connecting CCKH to a China-based biotech/pharma remains accurate, everything I have run across during my searches seems to point to Daqing Morinaga as being the company. For example, in this job advertisement some of the geographic language matches very well with the description contained in that Chamber of Commerce article (post #189): "company headquarters in Shenzhen"; "Jiangxi Fuzhou"......
http://translate.google.com/translate?hl=en&sl=zh-CN&u=http://www.jxrczpw.com/Html/JobDetail/42992.html&ei=XDDPS8L7MISKNsThgd4P&sa=X&oi=translate&ct=result&resnum=35&ved=0CMABEO4BMCI&prev=/search%3Fq%3D%2522%25E5%25A4%25A7%25E5%25BA%2586%25E7%259B%259B%25E6%25B0%25B8%2522%26num%3D100%26hl%3Den%26lr%3Dlang_zh-CN
Belmont sold the shell...should see 8-k filing soon.....
Belmont Partners sold the CCKH shell on Tuesday 4/20/2010, according to the Form 4 that was filed today. So I would guess we should be seeing an 8-k filing relatively soon, perhaps sometime this week or early next week.
http://knobias.10kwizard.com/filing.php?param=&ipage=6900525&DSEQ=1&SEQ=&SQDESC=SECTION_INSIDER&exp=
RonnieD...I still expect conversions to occur.....
"consider.. this deal was prior to the merger.. Capersia's 1 million shares are now 10,000 shares.. this note was from the days when Frank didn't want to pay the money on the note. Now that the co is different and they have already paid 175k to own it, let's say Krieg et al. have the money to pay the note.. Cascata and Seven Palms would have to demand repayment of the note before they could convert. As it was, Capersia had a year and a day prior to conversion to alert the company (under its former owner).. looking at the wording I think it's possible that the noteholders must demand repayment in cash of the note before they can resort to share conversion."
Two points....
1) For reasons I am unsure of, Krieg chose not to pay off the $12k note at the time he purchased the shell.
2) This week, instead of just simply paying off that $12k note in cash Krieg went through the time/expense of modifying the note terms to include a percentage ownership limit clause.
Those two points above strongly suggest to me that for whatever reasons Krieg wants to keep the note active, instead of just getting rid of it. And that strongly suggests to me that he is planning on having the note holders convert at least some of the debt into shares at some point. If Krieg is planning on paying off the note in cash, there would seem to be little need for a percentage ownership limit clause.
Otherwise, it would seem completely pointless to have this note hanging around the company's neck, when he could have a mostly debt free and clean shell on his hands if he just simply paid the note off now.
Regarding the conversion language: As I read/interpret it, I think the note holders simply have to give the mandatory year and one day advance notice, and at any time prior to the repayment the note holders can request repayment in the form of shares (from the 2008 10-K)......
On June 1, 2007, we issued Capersia Pte. Ltd. (“Capersia”), a shareholder of the Company, an $8,000 Promissory Note to evidence an $8,000 loan we received from Capersia (the “Note”). The Note has an effective date of June 13, 2007, and bears interest at the rate of 6% per annum until paid in full. The Note is payable on demand with one year and one day prior written notice, and any amounts not paid when due accrue interest at the rate of 15% per annum. (We have not been supplied such notice.) Capersia has the right; at any time prior to the date such Note is repaid, to convert any or all of the outstanding principal amount of the Note into shares of the Company’s common stock at a conversion price of $0.10 per share. If converted in full, the $8,000 Note (not including any accrued and unpaid interest) would convert into 80,000 shares of our common stock. Other terms apply.
RonnieD...conversion assumption, friendly hands.....
"I think you're making a mistake to assume full issuance to the A/S limit of 100 million is automatic. Furthermore 9.98% of 100 million is 9.98m."
Based on the fact that the parties involved have made it clear that the conversion price remains set at .001, I think it is logical/prudent to assume that the entire note will eventually be converted into shares. So my assumption is that ultimately 11.7M shares will be issued to the note holders.
I have made no assumptions regarding what GNZR's outstanding share count will eventually look like. Again, the only assumption I have made is that the note will eventually get converted into 11.7M shares, which is why I figure that number into the fully-diluted amount.
Again, I think people need to just completely ignore the percentage ownership limit feature. I have a feeling that this feature is causing considerable confusion and is kind of playing mind games with people. I think people are forgetting that nothing in the feature requires the note holders to keep each and every share they convert. If the note holders bump up against the ownership limit number on a conversion, they can simply sell some shares so they can make another conversion.
This feature has no effect on the total number of shares that can (and will be) issued if the note holders elect to convert the entire note into shares. That number has already been set at 11.7M shares and that number will not change unless there is some modification of the note terms. GNZR's authorized share count of 100M also has nothing to do with the amount of shares that can (and will be) issued if the note holders elect to convert the entire note (again, 11.7M shares).
The only thing this feature does is just extend the conversion over a length of time, depending on what GNZR's outstanding share count looks like at the time of each conversion. For example, let's say that GNZR makes an acquisition and there are now a total of 10M shares of GNZR outstanding. The note holders at that point could convert up to about 1M shares and then sell those 1M shares. The next time they convert they could get about 1.1M shares, because GNZR now has 11M shares outstanding. They can then sell those 1.1M shares and the next time they convert they could get about 1.2M shares because GNZR now has 12M shares outstanding.
"so i believe the note is in friendly hands, friendly to Jacobs at least who is still holding into next year by agreement."
It is entirely possible that the note has been placed in friendly hands. What is unknown to the retail shareholders at this point in time is whether this note benefits the shareholders/GNZR in any reasonably attractive fashion.
For example, if the note holders happen to own some assets/businesses (or have the ability to attract acquisition targets) that can be injected into the GNZR shell on extremely attractive terms to GNZR and its shareholders, then that would place this particular note/debt into a different light. However, if the retail shareholders ultimately receive no significant benefit from this note under its present terms, then it has the potential to become an extremely unattractive situation.
Zen lunatic420...percentage ownership limit feature.....
"Potse, I don't think we have enough details to be sure of this. As I read it, the current OS of 120,000 could only be diluted by 12,000 (10%) by the two note holders. I guess the missing detail is if the note holders can convert up to 4.99%, turn around and sell the shares, then come back and convert some more."
As far as I can tell, this looks like a pretty standard percentage ownership limit feature that they have installed on this note. The note holders can convert up to the limit level, sell some shares, convert some more debt, sell some shares, rinse and repeat.
The only major/unusual difference might be the one-year advance notice that the note holders must give GNZR anytime they wish to make a conversion. I believe that provision remains in effect in this new note deal, although I'm not 100% certain. But that provision wouldn't prevent GNZR from just agreeing to waive the provision and allow the note holders to make some conversions, as they did last year prior to the change in shell control.
My primary concern here is what kind of impact will this debt overhang have on the ability of the company to make acquistions/financings on attractive terms. If I am an insitutional investor looking to finance GNZR, or if I owned a private media/entertainment company and GNZR approached me about acquiring my company, that potential 11.7M share overhang is likely going to be a significant factor in any negotiations.
marich...Frank Jacobs, Loev warrants......
"Frank Jacobson agreed to have his shares locked up and I presume that they were reversed. If there is significant dilution due to conversion of this note, wouldn't that disadvantage his position (as well as ours) dramatically. If so, why would he have agreed to terms which allow it to happen?"
It is possible that Jacobs is privy to information that is not currently available to retail investors, and he is comfortable/confident in holding his position through any corporate actions the new management team pursues.
"What's your take on relevance of the strike price of the warrants stipulated as compensation for the attorney. A $10.00 strike price would seem to indicate an expectation that the pps would be at that level at some point."
I wouldn't place any relevance on the strike price of those particular warrants, because I'm pretty certain those warrants David Loev owns were issued back in 2006. This is the description of the warrants in the 2009 10-K.....
Our legal counsel, David M. Loev currently holds warrants to purchase 2,000 shares of our common stock at an exercise price of $10 per share, which warrants expire if unexercised on May 20, 2011, and contain a cashless exercise provision.
That description matches perfectly a description that can be found on page 30 of the 2008 10-K (remember to adjust the numbers to reflect the 1:100 reverse split)......
One person currently holds warrants to purchase 200,000 shares of our common stock at an exercise price of $0.10 per share, which warrants expire if unexercised on May 20, 2011, with a cashless exercise provision.
marich...the note terms......
"I'm still trying to get a grip on this. Are you saying that the current 0/S of 120,000 shares has the potential to be diluted by millions of shares from this convertible note, the face value of which was only a few thousand dollars?"
That is correct. The terms of the note are spelled out quite clearly in the filings. If the entire note eventually gets converted into common shares, it would result in a total issuance of 11.7M shares.
I've placed in bold the key points of this deal that you should focus on. My suggestion is to just completely block out the references to the percentage ownership limit feature, since it is nothing more a "timing" feature and doesn't have any effect on the total number of shares that the note can be converted into......
On or around April 13, 2010, Cascata and Seven Palm entered into acknowledgments with the Company, whereby the Company acknowledged that the conversion price of the Note was not affected by the Company’s 1:100 reverse stock split and remained at $0.001 per share, and each holder agreed that they will not be able to convert the Note into a number of common shares that would result in them owning more than 4.99% of the issued and outstanding common stock of the Company and that neither holder would transfer or sell the Note to any third parties without the prior written consent of the Company, which consent will not be unreasonably withheld.
If the remaining approximately $11,764 of principal was converted into shares of the Company’s common stock, such Promissory Note would convert into 11,764,000 shares of common stock, however, as described above, both Seven Palm and Cascata have agreed that neither of them will ever convert an amount of the Note such that after such conversion either party would own in excess of 4.99% of the Company’s then outstanding common stock, so converting the Note can never be used to effect a change of control by Cascata or Seven Palm.
db7...shareholder count, shells.....
"what does the 'whole hand' mean? can the merging in company distribute for example 100 shares of stock to every employee to bump up shareholder count (if i recall from one of my spac's the min amount of shares to be counted is 100)"
Not exactly sure if I have ever seen that terminology before. I can't recall the last time I actually looked at the listing requirements. I don't know the specifics on how companies manage to get the shareholder count up to the required number, but if a company/consultant is determined to get the listing done they always seem to figure out a way to satisfy the requirements.
"can't believe idcx went to .15 today... guess it was a buy at .008 ;)"
The world of shell investing is quite an interesting thing indeed. When you see shells like IDCX explode in price/valuation, and you see some of the shell share valuations that quality China RM are attaining (CFMI, RMSI, CGPI, for example), it just highlights the attractiveness of shells like CCKH.
Zen lunatic420...I prefer the original terms.....
"Potse, I'm not extremely pleased with these new terms either, but they're much more reasonable than the original Promisory Note terms. There's a percentage ownership limit of 4.99% on both the note holders, so they'll never be able to convert the note to more than 9.98% of the equity in the company.....and with 100M authorized shares....will never convert to more than 10M."
I guess I view the terms and attractiveness of this note very differently from how others see it. The percentage ownership limit is just kind of a side feature of the note that prevents the note holders from converting the note all at one time (you see this feature installed in many non-toxic and toxic financing deals). For example, anytime the note holders reach the specific ownership limit the only way they can convert more of the note is by selling some of their existing shares or waiting for some event that increases GNZR's outstanding share count.
The addition of the percentage ownership limit feature has no effect on the total number of shares that can be issued. That number is the same in this new note deal as it was in the original (11.7M shares). And that is where the problem lies, because there is a huge dilutive difference between 11.7M shares pre-reverse split and 11.7M shares post-reverse split.
As a result of GNZR agreeing not to adjust the conversion price of the note higher along with the reverse split, they have effectively increased the fully-diluted valuation of the shell by about 40x (negative dilution). Using my average pre-split cost basis of .017 cents, GNZR has gone from a fully-diluted, pre-split valuation of about $500k to a fully-diluted, post-split valuation of about $20M. A 30M share shell at .017 is significantly more attractive on a purely fundamental basis versus a 11.8M share shell at $1.70.
IDCX/CCKH comparison....worth noting.....
"By the way, I see ACTN has traded a fair amount of shares around 18 cents today. That gives the ACTN shell shares a valuation of $3.3M. For comparison purposes, that is the equivalent of the CCKH shell (current market cap: $700k) trading at over $1.40/shr."
Belmont Partners sold ownership control of the IDCX shell last week, and it will probably be filled with a China-based company. IDCX is currently trading at a valuation more than 4x that of CCKH, and has a share structure significantly larger......
IDCX (.05) 68.2M outstanding, $3.4M market cap
CCKH (.35) 2.3M outstanding, $800k market cap
GNZR...negative dilution potential......
"My primary concern at the moment regarding GNZR is that promissary note and any remaining debt that wasn't covered by the money Krieg used to purchase control of the shell (since one of the conditions of the control change was that all of VOIG's debt other than the promissary note be eliminated, I am assuming that money was used to pay off the debt). As long as there hasn't been some unexpectedly ugly pre-split dilution, or some kind of ugly change to the note terms that would result in an ugly post-split dilution situation, I generally like my chances of walking away from this investment with a profit."
I'm not pleased at all with the note terms. By keeping the conversion price of the note at .001, and not having it get adjusted upward along with the reverse split, GNZR has taken a step along the negative dilution pathway.
The agreement immediately turns GNZR into an extremely unattractive shell on a fully-diluted, fundamental basis (11.89M shares outstanding, market cap around $8-20+M). This is the last thing I wanted to see because it places GNZR into a potentially ugly situation, particularly if they wish to attract institutional investors at some future point in the development of the company.
To offset the effects of the note on the fundamental picture, GNZR will need to basically inject assets/business into the shell at prices that are extremely favorable to GNZR and its shareholders. As I mentioned in the post above, my main concern with this investment was the note and any changes to that note that would result in a negative dilution situation. This is definitely not what I wanted to see the company do, and from this point forward management's actions will need to decisively/soundly offset that negative dilution event.
temp luvs amy...process of finding the name......
"I think Potse might have a little more than Google as an information source, but "public" is "public." If a little bird tells you the search words to find the public info, then it really isn't inside information."
I have no "little bird" that tells me anything of useful significance on this investment (or for that matter, any of the other investments I post about). I've never had any contact of any kind with Belmont Partners or Joseph Meuse. The only contact I have had with former CCKH CEO Michael Klinicki was a single email exchange over a year ago in March 2009 (basically I was trying to get a sense of what his "definition" of a reverse merger was because some CEOs can have very different views on the subject).
Here is the basic process I took to find the name of the China RM company......
1) The combination of Klinicki putting a picture of Beijing on the CCKH website and the Nevada name change to "China Domestica Bio-technology Holdings" made it pretty clear that CCKH was most likely going to do a reverse merger with a China-based company.
2) So, as I mentioned in a previous post, I started doing searches of Chinese websites for any hits on "CCKH.ob"
3) Eventually that search resulted in finding the China Chamber of Commerce website, where the connection between the CCKH ticker symbol and a China biopharma/biotech was made.
4) Doing a search on certain phrases/words contained on that website eventually led me to the article describing the ground-breaking ceremony at the industrial park.
5) Searches using phrases/words from both of these websites also eventually led me to the Cosmos Investment website.....
http://translate.google.com/translate?hl=en&sl=zh-CN&u=http://i.zhongsou.com/haoyi/channel/1509396&ei=dr2-S6m-NIzlnQeC1rW3Cg&sa=X&oi=translate&ct=result&resnum=8&ved=0CC8Q7gEwBw&prev=/search%3Fq%3D%2522%25E4%25B8%25AD%25E5%259B%25BD%25E5%25AE%25B6%25E8%259D%2587%25E7%2594%259F%25E7%2589%25A9%2522%26hl%3Den%26lr%3D
Click on the "more" button in the first box on the left side of the page and that bring up the following, which proved to provide a very key piece of information (the name of the subsidiary, "Daqing Morinaga").......
http://translate.googleusercontent.com/translate_c?hl=en&sl=zh-CN&u=http://i.zhongsou.com/haoyi/detail/article/372825&prev=/search%3Fq%3D%2522%25E4%25B8%25AD%25E5%259B%25BD%25E5%25AE%25B6%25E8%259D%2587%25E7%2594%259F%25E7%2589%25A9%2522%26hl%3Den%26lr%3D&rurl=translate.google.com&twu=1&usg=ALkJrhg-p5q64G_wee7GshSUq-JFG4h8TQ
6) The problem I encountered at that point was my searches for "Daqing Morinaga" wasn't providing any useful hits. So I tried a different approach. If you place your cursor over the paragraph that contains "Daqing Morinaga" in the above page, a pop-up will appear with the original Chinese text. Through a little bit of trial-and-error I was able to select out of that Chinese text enough correct snippets to use for searching Chinese websites for "Daqing Morinaga".
7) Those searches eventually led me a job advertisement that the Daqing Morinaga had placed on April 2, 2010......
http://translate.googleusercontent.com/translate_c?hl=en&sl=zh-CN&u=http://my.yingjiesheng.com/job_54335.html&prev=/search%3Fq%3D%2522%25E5%25AE%25B6%25E8%259D%2587%25E7%2594%259F%25E7%2589%25A9%25E6%258E%25A7%25E8%2582%25A1%25E6%259C%2589%25E9%2599%2590%25E5%2585%25AC%25E5%258F%25B8%2522%26num%3D100%26hl%3Den%26lr%3Dlang_zh-CN&rurl=translate.google.com&twu=1&usg=ALkJrhhVOZFpMNJmrIvKWwRgryJ--5PJ8g
The Daqing Morinaga website can be found near the bottom of that page. Also, if you click on either one of the two Daqing Morinaga links in the upper part of the page you will go to a page where you can find the "Daqing Yong Sheng Technology Development Co" name (which I believe is the parent/holding company).
RM candidate...website.......
It took quite a bit of effort, but one of the sites I clicked on last week provided a key piece of information that eventually led me to what I believe is the company that is being reverse merged into the CCKH shell.
I'm still having some difficulty determining what the exact name of the company is, but it is likely to be something reasonably close to the following.......
1) Daqing ShengYong Technology Development Company (possibly the parent/holding company of the subsidiary below). Haven't found a website for the parent/holding company.
2) Daqing Morinaga Biological Engineering Technology Development Company
Website for Daqing Morinaga.....
http://www.dqsyjy.com/
http://babelfish.yahoo.com/translate_url?doit=done&tt=url&intl=1&fr=bf-home&trurl=http%3A%2F%2Fwww.dqsyjy.com%2F&lp=zh_en&btnTrUrl=Translate (translated version)
The reverse merger candidate does appear to be a revenue-generating operation. Both the company website and a job advertisment the company made earlier this month mentioned annual revenue over $7M (but it is possible that rev number could be dated). If the information I posted previously regarding a significant company expansion is indeed accurate, that could bode very well for the company.
CCKH...biotech/pharma reverse merger......
Several years ago I discovered that one way you can get some advance notice of a China reverse merger is by attaching the ".ob" to a shell's symbol and then searching Chinese websites for any hits. I have been doing the "CCKH.ob" search on a regular basis since the Nevada name change occurred, and tonight was the first time something noteworthy appeared.
I believe that CCKH is reverse merging with a China biotech/pharma. I have not been able to determine what the exact name of the company is, but based on the description it appears that the company is involved in technologies/products based on proteins derived from houseflies/insects (nutritional, drugs, skin care, burns, etc.).
I also wasn't able to determine whether the company is fully-operational/profitable or in the development stage. A couple of things that I did find and think are noteworthy......
1) In early 2009 a large investment fund/firm in China apparently acquired a nearly $12M stake in the company.
2) It appears that in January 2010 the company had a ground-breaking ceremony at an industrial park. This is a $31-48M, 300-acre investment, and following completion of the facilities either the company as a whole or just the new facilities will be capable of producing $220M in annual revenue.
CCKH.ob search of Chinese websites produced this interesting hit. On a Chinese Chamber of Commerce website, the following appears (translated)......
China Fly biomedical holding company is specialized in housefly insect active protein in the field of applied biomedical R & D, production and sales of high-tech biological pharmaceutical enterprises, the company of "science and technology to create a healthy, professional win the trust" business purposes, adhere to standards, the state of the high standards of philosophy as a guide, the product-oriented scientific research, patents, technology, innovation, relying on high-technology industries development. Company in the U.S. Nasdaq (NASDQ) successfully listed, listed code: CCKH.OB): Headquartered in Shenzhen, the company invested in 330 million yuan in Fuzhou, Jiangxi Fuzhou Sheng Yongsheng materials Pharmaceutical Co., Ltd. was established to build national CD the activity of a protein biomedical industry park.
http://webcache.googleusercontent.com/search?q=cache:cHqvkTN25D4J:szfzsh.com/file.php%3Fts_id%3D227%26weblan%3Dg+%22cckh.ob%22&cd=1&hl=en&ct=clnk&gl=us&lr=lang_zh-CN
Ground-breaking ceremony, and company description.....
Yesterday morning, ask the North Industrial Park, fireworks went off everywhere, from the U.S. NASDAQ listed company in China holding company, housefly biological industry invest property in Fuzhou Sheng Yongsheng Pharmaceutical Co., Ltd. started in the ground-breaking ceremony was held here. Municipal Committee, vice mayor Huang Mu Hong, Vice Mayor Johnson attended the groundbreaking ceremony Liu Ju.
Fuzhou Sheng Yongsheng property investment 210 million yuan Pharmaceutical Co., Ltd., covers an area of 300 acres, mainly depend on the parent company's technology as a backing. Its parent company owns the world's most advanced protein housefly biotransformation, biological pharmaceutical technology, can produce clinical nutrition protein, non-medical nutrition protein, skin care products, drugs, burns four major categories of 15 varieties of products, all raw materials are from insects - Musca domestica protein. After completion, the annual output up to 1.5 billion, and paid taxes 80 million yuan.
http://translate.google.com/translate?hl=en&sl=zh-CN&u=http://www.jxfz.gov.cn/xxgk/zdgc/yqjs/201001/t20100116_812753.htm&ei=dr2-S6m-NIzlnQeC1rW3Cg&sa=X&oi=translate&ct=result&resnum=2&ved=0CBAQ7gEwAQ&prev=/search%3Fq%3D%2522%25E4%25B8%25AD%25E5%259B%25BD%25E5%25AE%25B6%25E8%259D%2587%25E7%2594%259F%25E7%2589%25A9%2522%26hl%3Den%26lr%3D
steeledge...YHGG's auditor......
"does this mean that they found a PCAOB auditor that will sift through their mess?"
I believe YHGG has actually had a PCAOB-registered auditor since October 2006, but not many people were probably aware of that fact. Based on the press release below, I am guessing that originally YHGG was probably planning on having an American-based auditor work with its China-based auditor.
YHGG auditor press release.....
http://findarticles.com/p/articles/mi_pwwi/is_200610/ai_n16778812/
PCAOB registered firms (Gan-Su Hong-Xin Accountants Firm can be found on this list)......
http://pcaobus.org/Registration/Firms/Documents/Registered_Firms.pdf
YHGG(.60)...bringing filings current.....
It has gone largely unnoticed but YHGG has quietly started the process of bringing its SEC filings current. In the last 3 weeks, it has filed 3 quarterly reports and 2 annual reports. It has also filed a NT 10-K, so they are planning on filing the 2009 10-K.
No question that YHGG has always been a pretty controversial and often puzzling stock. But given the recent development regarding its filings, it might be worth picking up a little speculative position at these sub-$1 levels.
From the 2005 10-K filed last week......
Due to a lack of the PCAOB certified auditor, on September 6, 2006, we filed Form 15-12g, required by Rules 12g-4, 12h-3 and 15d-6 of the General Rules and Regulations under the Securities Exchange Act of 1934. We are in the process of bringing all of our quarterly and annual reports current. On March 15, 2010, we started this process by filing our Form 10-K for the fiscal year ending December 31, 2004.
Commentary from the 2009 10-K.......
I continue to believe that DION is not getting the attention it probably deserves. Having a Managing Director at Brean Murray, Carret & Co. actively assisting DION on both the sales and M&A front is an asset that should be causing some eyebrows to raise a little. Roy Teng was a member of the business development team that originally brought CHID/NEWN public. I think the contacts/experience the new controlling investors have in the Asia region will ultimately change DION in very significant ways.
An operating technology company that can be break-even/profitable on a relatively low level of revenue, combined with the very distinct possibility of some merger/acquisition activity, makes for a pretty intriguing situation here. Management's commentary from the 2009 annual report.....
At the time of this writing, late in March of 2010, there is solid evidence of renewed new order bookings, a moderate projected improvement for the First Quarter of 2010 and, if the favorable trends continue, a welcome bounce-back for the entire year of 2010. Our primary technology thrust remains focused on the large market potential for our optically-isolated, photovoltaic (PV) MOSFET-Drivers. As our new investor, CML, continues to become familiar with that market and our technology, they are beginning to ramp up their efforts to assist our sales programs in Asia, largely in China and Japan. We have also been using this still relatively slow period to further enhance product performance as well as also explore a variety of other growth opportunities. As the assistance from CML begins to materialize, management at Dionics will be alerted for signs of “rabbit-ears poking out of the proverbial hat.” We will be more than pleased to share the news.
SBAT returns to "no-brainer shell" status.....
The 10-K filed yesterday contained some excellent news. SBAT has abandoned the Chinese incubator business plan that it had started in December and has now returned to being a shell.
All of the stock/warrant transactions that were associated with the implementation of that new business plan have been undone. Shares outstanding have returned to 995,655. It also appears that Viking Investments will continue the previous arrangement it had with SBAT to assume all financial responsibility for SBAT's expenses until there is a change in majority ownership of the shell.
The only area of potential concern that I have involves Philip Wan's resignation letter. His letter doesn't contain the "no disagreements and no current/future demand for compensation" paragraph that the other Director's resignation letter contains. As long as Wan's departure from the company is amicable and no significant problem exists/develops between the two, SBAT has returned to being one of the most attractive shells out there.
DesertRat1...name, ACTN.....
"Potse, what's your take on the fact that the company name was changed with the Nevada Secretary of State immediately upon the Meuse purchase? I noticed that with ACTN, even though they have filed with the SEC disclosing a merger deal, the name has not yet changed with Nevada. It seems to imply that Meuse might have different intentions with CCKH, or perhaps something was already in the works as control was acquired."
Regarding the name change: I don't really know for sure what to make regarding the timing of the name change, but my assumption is pretty much in line with what db7 mentioned. The fact that the name has been changed to "China Domestica Bio-Technology Holdings" seems to suggest that a specific RM target company has likely been selected or already signed to a deal.
Regarding China reverse mergers and names: Quite often on China RM plays you will see that the name selected to represent the new company has little or sometimes no resemblance to the actual name of the China company itself. That can make it pretty difficult to find information via search engines.
Based on CCKH's new name, I am assuming/guessing that the RM company or new business direction probably has something to do with biotechnology in the areas of pharma, agriculture, or perhaps some sort of environmental applications.
By the way, I see ACTN has traded a fair amount of shares around 18 cents today. That gives the ACTN shell shares a valuation of $3.3M. For comparison purposes, that is the equivalent of the CCKH shell (current market cap: $700k) trading at over $1.40/shr.
032798...understanding your viewpoint.....
"I'm sorry. But you don't understand my viewpoint then."
I disagree. Your dislike of CCKH revolves around the possibility of a share reorganization and how it would affect the upside/downside of the stock. I do think I have a fairly good idea of why you don't want to be invested in CCKH (or any other shell) if it does a reverse split, because you believe it can have an overwhelmingly negative impact on the potential of the play.
I think your views on "negative" reorganizations (reverse splits) in shells are pretty well documented by your postings on the subject (not just on this board, but various others). Which is why you generally gravitate more toward "positive" reorganizations (forward splits). There is nothing inherently wrong with that investment strategy, as I also like to play forward splits when an intriguing opportunity presents itself. But just like reverse split plays, sometimes the forward split plays work out well and sometimes they don't.
I just find it rather interesting that some of the shells you have mentioned to support your decision to sell your CCKH position have/had share structures and market caps significantly higher than CCKH. Personally, the fact that ASMH (40+M shares, $1.5M debt on the books) underwent a share reorganization doesn't make me want to sell my CCKH position, regardless of any potential reverse split.