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It is a solution for interest and penalties. It says nothing about the repayment of the note/debenture?
Also is says nothing about upcoming interest-payments.
In the next few weeks two things can make the shareprice change for the better for Jiangbo:
- numbers on Q2 FY 2011
- 28th Feb. is the due date on the Nov 2007 Debenture, what will be the outcome?
Pffff, the selling continues.
Let's hope the numbers on Q2 will be out soon, I think they are due 14 or 15th of February or so. Maybe they will blow us away. Then shortly after that we'll see what solution they come up with regarding Pope...
A little thing that I found remarkable, from today's filing.
"The Company became delinquent on the payment of interests under the 2007 Notes and 2008 Notes due to delays in its ability to transfer cash out of the People's Republic of China."
It says "delays in its ability", that means they eventually will be able to transfer cash I guess?!?! So let's see this as proof that the problem is solvable and that the cash is really there.
I guess Pope started selling right away?
Accrued interest and related interest penalty as of September 30, 2010 amounted to $5,535,566.
To make up for that they need at least $6.25 per share
Why is it a lie? Jiangbo hasn't paid Pope, they gave shares, that is not the same as handing over cash?!?
The article is critical but fair I think.
New agreement on Nov. 2007 financing: not due untill Feb. 28th 2011. Ddelinquent interest payments and penalties settled for 886,277 shares.
Nice that this part is worked out.
Now a total of 13 Million shares outstanding, I guess? Will these extra shares cause selling pressure, we'll see, but I don't think so. Think Pope will be wanting something more than $6-$7. Or do they need that cash quick?
sorry doublepost...
A little bit early:
Merry christmass everybody!
I guess some institution is hedging their position?
Short position increased a whole lot.
Or is bad news on the way?
Agreed 100%. Thanks for sharing
@BigGreen101: do you mean these lines?
"The security purchase agreement set forth permitted indebtedness which the Company’s lease obligations and purchase money indebtedness is
limited up to $1,500,000 per year in connection with new acquisition of capital assets and lease obligations. Permitted investment set forth with
the security purchase agreement limits capital expenditure of the Company not to exceed $5,000,000 in any rolling 12 months."
What does captial expenditure mean? Using cash?
I guess this will not be the case after May 2011? Or do we have to wait untill May 2013 (Ending of warrants)
Jiangbo Pharmaceuticals Announces Progress in Negotiations with Holders of its November 2007 Debenture and May 2008 Notes
LAIYANG, China, Dec. 2, 2010 /PRNewswire-Asia-FirstCall/ -- Jiangbo Pharmaceuticals, Inc. (Nasdaq: JGBO) ("Jiangbo" or the "Company"), a pharmaceutical company with its principal operations in the People's Republic of China, today announced that negotiations with the holder of its November 2007 Debenture and the holders of its May 2008 Notes are continuing and that management believes that progress has been made in connection with reaching a settlement with such holders. To date, neither the holder of the November 2007 Debenture nor the holders of the May 2008 Notes have delivered an event of default notice with respect to these securities.
"We appreciate the support that our debenture and note holders have provided to the Company and are working hard to finalize a settlement that is in the interest of all parties. We will announce further details as soon as we have finalized the agreement," commented Mr. Linxian Jin, CEO of Jiangbo.
The 30th of November is almost over, I guess we can be expecting an offical update on the issues regarding the debenture ($5M) ?
Was it repaid in cash, have warrants been excercised? Or doesn't Jiangbo has to make that public through a PR? I hope thye have used their cash to repay, then there won't be any further dilution...
This sure is black friday, below $6
That has been a long time ago...
It can go much lower, 2-3 years ago we where at $3.xx
Reading all the posts on the yahoo message-board makes me a little worried.
First there is the story with RINO and that it has the same accountant as Jiangbo.
Second, what if it is true? What if money never gets transfered out of China? For over a year Jiangbo has been hinting that a solution is worked on, but never any real news on that issue. How is JGBO going to repay Pope and others? Why did they make a deal for $35 Million in cash, they have generated double/triple that amount in 2-3 years time, they never needed these deal I would think....
Will Jiangbo just print more shares, will Pope take other steps?
Jiangbo Pharmaceuticals Announces Conference Call to Discuss Results for First Quarter Fiscal 2011
LAIYANG, China, Nov. 11, 2010 /PRNewswire-Asia-FirstCall/ -- Jiangbo Pharmaceuticals, Inc. (Nasdaq: JGBO) (the "Company" or "Jiangbo"), a pharmaceutical company with its principal operations in China, today announced that the Company will host a conference call at 10:00 a.m. Eastern Standard Time on Tuesday, November 16, 2010 to discuss financial results for the first quarter fiscal 2011 ended September 30, 2010.
I guess someone knows something we don't. Why else would we see volume like yesterday and today...
Us simple shareholders are left in the dark, like most of the time with this company.
Within a week or two the numbers on Q1-FY2011 will be out. As most of the time this probably will be a non-event. Q1 of last fiscal year only brought 2 Million in net-income, they must be able to beat that this time.
What might cause some movement is the expiration of the $5 Million debenture on Nov 30th.
Below the first few lines from the deal (share-numbers to be divided by 40 because the deal was made before the reverse-split):
On November 6, 2007, Genesis Pharmaceuticals Enterprises, Inc. (the “Company”) entered into a Securities Purchase Agreement with Pope Investments, LLC (the “Investor”) pursuant to which the company, on November 7, 2007 (the “Closing Date”) issued and sold to the Investor, for $5,000,000 (a) 6% convertible subordinated debentures due November 30, 2010 (the “Debenture”) and (b) a three-year warrant (the “Warrant”) to purchase 10,000,000 shares of the Company’s common stock, par value $0.001 per share, at an exercise price of $0.32 per share, subject to adjustment as provided therein.
The Debenture bears interest at the rate of 6% per annum, payable in semi-annual installments on May 31 and November 30 of each
year, with the first interest payment being due on May 31, 2008. The initial conversion price (“Conversion Price”) of the Debentures is $0.25 per share. If the Company issues common stock at a price that is less than the effective Conversion Price, or common stock equivalents with an exercise or conversion price less than the then effective Conversion Price, the Conversion Price of the Debenture and the exercise price of the Warrant will be reduced to such price. The Debenture may not be prepaid without the prior written consent of the Holder.
Supposedly the company is working on ways to get the cash in play. This is a copy-paste from last CC's transcript. A question was asked about the 2007 debt. Below is the answer Ms. Sung gave.
Refinancing is really not our first preference at this point in time. We strongly feel that our stock price is very undervalued, so refinancing might bring in too much of dilution to our current shareholders. So, that is really not our preference. The option that we are contemplating still is, we are hoping that we can still get the cash, at least a portion of it, get those interests and penalty payout by cash. And you know, as far as how we are going to get the cash into the space, there are different roots that we are actually looking to. Some of the banks actually would be able to provide, especially those banks, the Chinese bank that is operating in China was an United States branch; sometimes it will provide basically loan to the United States entity using the China entities assets, either collateral or guaranteed.
So, that is one of the options we are looking to. And the other one is just go straight to the Government authority that asks for special permission, which is what our Chairman is working on. It is still quite a large amount of work in order to get a special permission. So, right now we still need to work on that.
Ouch, truth hurts.
Drastic.
Change in short interest:
As of 30th Sept. only 5k shares short, that is a big change. Shorties got the opportunity and covered, or did they create the opportunity ?!
I don't know. They once held 6 Million or so? Sld some but maybe in the meanwhile they sold everything. If they still own some shares it must be less than 5% because Jiangbo isn't in the list of 5% owners of Lotus.
See this link.
Sad.
Let´s focus on something else.
Here is a link to the press release of Q1 of fiscal year 2010.
Link.
Q1 of fiscal year 2011 has passed. Numbers will be out in 5 weeks. Let´s see if they pass last years quarter. Maybe that will be a catalyst for a positive development.
After that we can expect to some news on conversion and excercise of warrants. The $5 million debenture expires Nov. 2010 (I don't know if that is on the 1st or the 30th or something inbetween?)
Let's see if they can:
- beat their revenues of $24 Million
- beat their net income $2 Million (GAAP) or 9.1 Million (non-GAAP)
We don't know, Pope has the choice to buy them or not? If they think pps will definitely go above $8 why would they not excercise them?
I bet they didn't get all these prizes from happy investors...
I don't know if the Google-translator does its job right:
translated version of www.jiangbo.cn
This link says me Jiangbo is looking for a CFO on their chinese website. Will that be to replace Elsa Sung or just to have a CFO present at the location in China?
Date of the page is 19th of August 2010.
Unfortunate during the CC nothing was mentioned regarding this merger/acquisition. At least no company names or something like that. Nobody asked a question about the message we found at the imeigu.com website...guess that was old, or not true.
They said they were still looking for opportunities, so we will have to be more patient.
@BigGreen101:
My selling goal once was $35-40. I don't think we will ever get there, at least not before 2013. I am not sure if I will wait that long.
I really don't know what to think of it all... if last year was transitional and 2011 is not going to be better, why would 2012 be better?
Have you listened/participated in the cc maybe?
I am not buying more shares JGBO, that's for sure
Oh well, 1st quarter of fiscal year 2011 is over by the end of the day. Maybe when those numbers will be out we'll see an end to the downfall of the shareprice....
It is unbelievable:
$7+ dollar in cash per share, earnings per share of $2+ and then this shareprice, what is wrong here?!
I am trying to convince someone to buy my shares
@Traderfan:
Earlier they couldn't pay interest but gave Pope shares instead. It is in the 10k. They are working together with Pope they say, to work out a deal.
The real deal about the debentures is a long story, I'll try to make it very short.
Nov 2007, $5 Million debenture and 400,000 warrants at $8.
Notes and warrants expire Nov 2010
May 2008, $30 Million debenture and 1,875,000 warrants at $10.
Notes expire May 2011 and warrants expire May 2013
Per June 30th 2010:
Nov 2007 > $1 Million was converted
May 2008 > $8.2 Million was converted
July/aug/sept-2010 another $7.5 Million of May 2008 debenture was converted, see one of my posts from a (a few) day(s) ago. So in total from $35 Million the amount that has been converted is $16.7 Million
But please read it yourself in 10k, I don't want to misinform you or anyone else unintentionally.
@Traderfan: I agree with you. But the PR leaves a little room for improvement:
"Based on current information...."
An acquisition or merger could greatly improve things...
Part of the outlook:
Based on current information, the Company expects that revenues for fiscal year 2011 will be in the range of $94 million and $96 million and net income, excluding the impact from change in fair value of derivative liabilities and expenses related to the Company's convertible debentures, will be in the range of $29 million and $31 million.
I had hoped for a bigger projection ?!
Note 21- Subsequent event
In July 2010, the Company issued 562,500 shares of its common stock in connection with the conversion of $4,500,000 of May 2008 Convertible Debentures.
In August 2010, the Company issued 125,000 shares of its common stock in connection with the conversion of $1,000,000 of May 2008 Convertible Debentures.
In September 2010, the Company issued 250,000 shares of its common stock in connection with the conversion of $2,000,000 of May 2008 Convertible Debentures.
Guess (some of) these shares have been sold lately, causing pressure on the shareprice ?
That is old news
it was out yesterday.
@BigOnChina:
An acquisition is a good thing, they have stated before that they where busy with something.
A share buyback was once in program for $2 Million dollar, but not one share was bought back I believe, so I don't think that will be coming true
After reading the 10k I think Jiangbo has delivered what they promised. Numbers they projected where on target.
Remember they stated themselves this was a transitional year! Now let's see that they project for 2011.
More on the Hongrui facility:
Although several of our major products have entered into their maturity, we believe we will be able to continue to maintain our sales at its current level. In September 2010, we have commercially launched our newly approved product Felodipine Sustained Release Tablets and we expect the product to be quickly accepted by the market. Additionally, we expect to have our Hongrui facility renovation work fully completed and GMP certified by October 2010 and relaunched several of the traditional Chinese medicines acquired from Hongrui. The recent Healthcare Reform program announced by the Chinese government will also have a real and significant impact on all healthcare related industries in China, including the pharmaceutical industry
Here it is:
http://ih.advfn.com/p.php?pid=nmona&article=44566157&symbol=N^JGBO
The number of outstanding shares of the registrant’s common stock on September 24, 2010 was 12,639,302.
Net income $ 29,850,355
Cash, end of the year $ 108,616,735
n July 2010, the Company issued 562,500 shares of its common stock in connection with the conversion of $4,500,000 of May 2008 Convertible Debentures.
In August 2010, the Company issued 125,000 shares of its common stock in connection with the conversion of $1,000,000 of May 2008 Convertible Debentures.
In September 2010, the Company issued 250,000 shares of its common stock in connection with the conversion of $2,000,000 of May 2008 Convertible Debentures.
As of June 30, 2010 and through the date of this filling, no formal event of default notice has been presented by the November 2007 Debentures and May 2008 Notes holders. Accrued interest and related interest penalty as of June 30, 2010 amounted to $4,679,787.