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Call your brokers... that's what I did. Still not clear, but it seems like they might take care of it so that I get credited automatically.
Going private and relisting on the HK stock exchange... where they'll get a better valuation.
Just a hint... numerous times does not equate to a policy...
Just visited their Hangzhou facilities a couple weeks ago, and it obviously is.
But I thought you were done with this company Hank. Change of mind or just visiting?
Are you kidding me? Sell out as fast as you can.
Yes, good growth and judging from the conference call they have solid plans for expansion in cities where they have a foothold as well as new cities.
I just wish they could keep their costs down more, but they are maintaining their 30-35% profit margin, which is impressive.
The uplisting will come sooner or later. As management said on a previous earnings call, they submitted their NASDAQ application back in the fall.
more on SOKO's first analyst coverage from http://www.streetinsider.com/New+Coverage/Global+Hunter+Securities+Starts+SOKO+Fitness+%26+Spa+Group+%28SOKF%29+at+Buy/6191813.html :
Global Hunter Securities Starts SOKO Fitness & Spa Group (SOKF) at Buy
Click here to find out more!
More News related to SOKF
* Global Hunter Securities Starts SOKO Fitness & Spa Group (SOKF) at Buy
* SOKO Fitness & Spa Group Expands Presence in Core Market with Three New Facilities Under Operation
More News related to SOKF
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* Global Hunter Securities Starts SOKO Fitness & Spa Group (SOKF) at Buy
* Jefferies Starts Cyberonics (CYBX) at Buy
* Jefferies Starts Zoll Medical (ZOLL) at Buy
* Standpoint Research Starts hhgregg (HGG) at Buy, Sees 45% Upside
More News related to New Coverage
January 4, 2011 10:46 AM EST
Global Hunter Securities initiates coverage on SOKO Fitness & Spa Group (OTC: SOKF) with a Buy. PT $7.
Global analyst says, "SOKF is a leading fitness and spa business in northeast China. It operates nine fitness centers, 14 beauty salon & spas, and one beauty school to serve approximately 24,000 fitness members and 25,000 spa customers. The unique business model includes cross-selling fitness and spa services and primarily targeting mid- to high-end consumers. During the last three years, the company has grown revenue at a CAGR of 59% while maintaining high profitability with 64%-69% in gross margins and 33%-36% in net margins. With strong cash flow and a healthy balance sheet, the company plans to open 16 facilities in FY11 and 20-25 facilities in FY12 with a goal of operating 85-90 facilities by FY13. We like the market potential of the sector and SOKF’s consistent strong execution."
For more ratings news on SOKO Fitness & Spa Group click here and for the rating history of SOKO Fitness & Spa Group click here.
Shares of SOKO Fitness & Spa Group closed at $4.25 yesterday, with a 52 week range of $2.15-$4.94.
http://www.theflyonthewall.com/permalinks/entry.php/SOKFid1352679/SOKF-SOKO-Fitness--Spa-initiated-with-a-Buy-at-Global-Hunter-preopen
"SOKO Fitness & Spa initiated with a Buy at Global Hunter (pre-open)
Target $7."
bleh.. nothing we didn't know about a year ago.
Lots of insider buying by IDG. They are the institutional shareholders that bought a 10% stake in March. Sounds like SOKO didn't want to sell them more than 10% (a good sign), so they have been buying over the last several months on the open market.
IDG are the guys who backed Baidu and CTrip. They have an observer on SOKO's board, so they probably have very good information.
IDG featured SOKO on their website several months ago when they bought their initial stake, but removed them shortly after. I wondered why at the time. Perhaps I now understand - they did not want to promote the company while still buying on the open market.
See
Form 4 SEC Filings showing IDG buys
1 week ago, there was a day with 0 volume, and today's volume is over a quarter million?!? What's up with that?
SOKO's FY2011 Projections also look good: (1) $38-40 million in revenue; (2) 11-12 million in SG&A; and (3) 16 new facilities. Hope NASDAQ approves soon.
Ah, I thought that box was a new feature, but it isnt'. I probably mistakenly clicked "Show/Hide iBox."
Why do we have that huge message up top? Nice 10% bump so far today, although on low volume.
I plan to attend SOKO's Rodman presentation in New York today. Let me know if you have any questions for management, and I'll try to get you their response.
I understand they applied to be listed on the NASDAQ in July, which means we should be on the lookout for an uplisting any day now. Any thoughts on the uplisting's effect?
I called NASDAQ up. If everything is in order, it takes 6-8 weeks for a company to be listed on the NASDAQ after its application.
According to my understanding of the call today, SOKO has submitted their application to uplist to the NASDAQ.
How long does it take to uplist once the application has been submitted? Anyone know the typical timeline?
SOKO "will report financial results for the fourth quarter and fiscal year ended May 31, 2010 on Monday, August 30, 2010, before the start of trading in the U.S.
The Company will host a conference call to discuss the results on Monday, August 30, 2010 at 8:00 a.m. Eastern Time. Interested parties may access the conference call by dialing 1-877-941-2321 in the U.S. and Canada, or 1-480-629-9714 internationally."
http://www.prnewswire.com/news-releases/soko-fitness--spa-group-to-report-fourth-quarter-and-fiscal-year-end-2010-financial-results-on-monday-august-30-2010-101364649.html
Anybody have questions ready for them? We obviously don't have the results yet, but I am wondering if they are going to focus their branding strategy - they currently have at least 6 different brands for only 20 spas/clubs. Just off the top of my head: Daoli Fitness, SOKO Fitness, Yoga Wave, Lea Spa, Legend Spa, Queen Beauty Spa. Their websites are also subpar right now.
These things probably are not an immediate concern, but competitors with strong brands (e.g. Equinox and Japanese operators) have plans to roll into China soon, and SOKO better have a strong brand established by then.
I'm divided about that... I need more time to build up a bigger position :)
btw, an update... Earnings will likely be out towards the end of August... rather than mid August.
I wrote a new article on SOKO at SeekingAlpha here:
http://seekingalpha.com/instablog/697819-china-investor/84974-high-conviction-a-reliable-high-growth-chinese-spa-fitness-operator-poised-to-pop-this-month
Tripled my holdings to around 40k shares :)
Below is an article re SOKO. I will be posting my own article within a week or two.
And here is a link to their most recent presentation: http://www.sokofitness.com/Investors/uploadfile/SOKO_Presentation_-_July_2010_Final%5B1%5D.pdf
By the way, can anyone confirm when their annual results (period ending May 2010) will be released? Their press people told me sometime in August, but I thought it has usually been released in September. Thanks.
**************************************************
Originally posted July 21, 2010 at http://geoinvesting.com/companies/sokf_soko_fitness___spa/research/research/0025576
Catalyst: Strong EPS growth; Fueled by an aggressive fitness/beauty center expansion strategy appeared to be in a position to continue its strong EPS growth.
Peak performance: Reached a high of $4.94 on March 23, 2010
Current Price: $4.01
Current road block: Internal control issues; Dilution could impact near-term EPS growth; No financial guidance.
We have high hopes for SOKF, but they have yet to put money from a recent raise to work, which has us moderately worried about short-term EPS growth. Although, the company should start seeing a positive contribution from facilities that are entering their prime growth cycle (starts in year two of operation). Short-term, investors would need to gain clarity on the extent that the moderating growth from mature facilities will be mitigated by newer facilities. We hope that SOKF completes an acquisition soon as this could be a way a to provide an immediate bump to EPS.
Contributor Dan France brought a few more points to our attention. He observed that the number of new clients joining SOKF centers seemed low relative to management’s business model assumptions. We posed this concern to management who said that tracking the growth in current client visits is more relevant to its business model and is within expectations.
Additional observations Dan made:
* "I was also concerned about the average annualized revenue per fitness club member. I understand fitness center revenues only make up 20% of so of revenues but still the premium pricing model seems to be meeting resistance." The average annualized revenue per fitness member was around $340 for the nine months ended Feb. 28 which is less than the annual membership fee of $441. Did SOKO have promotions offering discounted or even free memberships for new members or for member referrals? If so will they continue such promotions in the future?
* I recently heard a business report about Equinox’s plans to expand operations in China. SOKO claims to have a competitive advantage in the markets they are targeting. If global fitness industry players are also targeting China, will SOKO be able to compete with companies with far greater resources?
Overall, we believe SOKF management has a clear vision to build long-term shareholder value.
Short term and risk adverse investors should be aware of the quality issues currently present in the ChinaHybrid Space, questioning the validity of what seem like solid fundamental stories. It is beginning to get ugly so be cautious and understand that more pain may have to be endured, as ChinaHybrids are easy prey for short investors. The broad brush that is being applied to theses stocks appears unfair, but we can’t ignore the psychological impact this can have on investors’ portfolio decisions. If history is our guide, fear will eventually create an immense opportunity to invest in the companies that prove they can meet quality litmus tests enact shareholder friendly moves. Credibility can also be restored if independent legal/SEC opinions validate accounting practices currently in question.
We are unsure of SOKF’s plan to tap the equity market:
"We have historically funded our operation primarily through bank loans and incoming cash from operations. Over the next twelve months, we intend to pursue organic and acquisitive growth in the future and increase our market share in China. We are also evaluating acquisition and consolidation opportunities in China’s fragmented fitness and beauty salon and spa industry. We believe that we have sufficient funds to operate our existing business for the next twelve months. However, in addition to funds available from our operating and short term bank loans, we may need external sources of capital for our expansion."
SOKF completed an equity raise in April 2010, after the release of its 2010 first quarter results. Investors would need to investigate whether or not the need to raise capital is now taken off the table. All and all, we were not too thrilled that SOKF raised $10 million at $3.20 in the April raise. However, upon further inspection it appears that to implement its aggressive acquisition strategy a raise was necessary:
* Cash balance only stood at only $4.8 million:
* Projected annual Free Cash flow stood at $3.8 million: (2010 annual cash flow from operations run rate of $13.6 – 2010 annual capital expenditures run rate of $9.8 million)
Our intent over the short-term is to build a check list to assess the risk position of firms in the ChinaHybrid space. For the time being this will consist of the following: (this list is likely to grow substantially)
I've doubled my holdings over the past month... and more buying to come. The latest update I have from them is that earnings will be released by the end of Aug at the latest, but they may be able to release them earlier in the month. I think we'll see a nice bump from that. Plus, we should get soon get results for the 1st quarter after that. I'm anticipating some good momentum.
Then perhaps you should contact the company or their IR people for a precise address and directions, as well as a tour.
Sounds like their facilities are about an hour away. If you ask around, you should be able to find a car service that will drive you around and wait on you the whole day for a very very reasonable price.
What do you think about it? Sounds like an opportunity, but two aspects of it are unproven: hotels and 1st-tier established competition.
120k shares? Wow. You should at least get a ticket to Beijing (<$1000), take a look around, take some pictures, and at least tell us if the company is real or not.
SOKF... $4.05
They opened up a couple new facilities, as expected.
If I remember correctly from one of their previous SEC filings, these two facilities should generate $2 million over their first couple quarters. SOKO's quarterly revenue is currently around $8million, so this should provide a nice bump. With the average spa averaging 2000 clients, their pre-sales don't really impress. However, I don't know how long they have engaged in pre-sale activities - maybe these pre-sale numbers are in-line with their projections.
SOKO Fitness & Spa Group Opens Two New Harbin Facilities
Fitness and Spa Facilities Join Yoga Center in Harbin's Long Dian Building
HARBIN, China, June 23 /PRNewswire-Asia-FirstCall/ -- SOKO Fitness & Spa Group, Inc. (OTC Bulletin Board:SOKF.ob - News) ("SOKO" or "the Company"), an operator of fitness centers, beauty salons and spas in Northeast China as well as suburban Beijing, today announced the opening of its two newest facilities, Daoli Fitness and Legend Spa Central Club. Both centers, which, as previously announced, have been engaged in pre-opening activities for several months, are located in the Long Dian Building in downtown Harbin, China, a centrally located building for SOKO's target upper-middle class clients. SOKO now holds majority ownership in 13 fitness and spa facilities in Harbin, including Yoga Wave Harbin, which opened in February 2010 and is also strategically located in the Long Dian Building.
"Our newest facility openings further expand our presence in what we believe is an ideal location in Harbin, where there remains significant opportunity to attract new customers and clients from the city's rapidly growing upper-middle class," said Tong Liu, Chief Executive Officer of SOKO. "Having three facilities under a single roof allows us to fully leverage our cross-selling model while offering our customers and members a complete range of fitness, wellness and aesthetic services. Strong pre-sale activity at both Legend Spa and Daoli Fitness, as well as the continued growth we have achieved at Yoga Wave Harbin in the last four months, provides further validation of our prominent reputation in Harbin and the significant brand equity we have built since opening our first Harbin spa 18 years ago."
Harbin is one of the three largest cities in Northeastern China, with a population of more than 6 million and a fast-growing upper-middle class demographic. SOKO's three facilities in the Long Dian Building occupy a total of more than 60 thousand square feet, covering 5 floors of the 34-story commercial and residential building.
Consistent with SOKO's business model at other facilities, the Company expects annual spa visits and fitness club memberships to ramp significantly during these facilities' first two years of operation.
Legend Spa Central Club is a 20,000 square foot facility featuring 23 treatment rooms, and will offer a range of high-end beauty and aesthetic treatments in luxurious settings similar to those offered at SOKO's other facilities in Harbin, Shenyang and suburban Beijing. In conjunction with pre-opening sales and marketing activities, SOKO signed over 250 customers ahead of the spa's grand opening.
At Daoli Fitness, the Company has sold over 100 memberships during pre-opening sales activities. The 20,000 square foot facility features high-end classrooms and an area for private training sessions, state of the art equipment and amenities. Members of Daoli Fitness will have access to a variety of classes, including spin, Pilates and aerobics taught by expert trainers and instructors.
About SOKO Fitness & Spa Group, Inc.
SOKO Fitness & Spa Group, Inc., an OTCBB listed company (SOKF.OB), is an operator of fitness centers and beauty salons and spas in key cities in Northeastern China as well as in suburban Beijing. SOKO provides programs, services, and products combined with exercise, education, and nutrition to help their members lead a healthy life and achieve their fitness goals. For further information, please go to http://www.sokofitness.com .
To be added to SOKO's email distribution for future news releases, please send your request to soko@tpg-ir.com.
Cautionary Note Regarding Forward Looking Statements
This press release and the statements of representatives of SOKO Fitness & Spa Group, Inc. (the "Company") related thereto contain, or may contain, statements that are not historical facts and are therefore "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve significant risks and uncertainties. Such statements may include, without limitation, statements with respect to the Company's plans, objectives, projections, beliefs, expectations and intentions and other statements identified by words such as "projects," "may," "could," "would," "should," "believe," "expect," "anticipate," "estimate," "intend," "plan," or similar expressions. These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties, including those detailed in the Company's filings with the Securities and Exchange Commission. Actual results, including, without limitation, the performance of Long Dian Building facilities and results regarding the Company's expansion strategies, service offerings, client, membership and customer figures, proposed new center openings and prospects and strategies for growth, may differ significantly from those set forth in the forward- looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company's control). The Company does not undertake any obligation to update any forward- looking statement, except as required under applicable law.
For more information, please contact:
The Piacente Group, Inc.
Investor Relations
Brandi Floberg or Lee Roth
Tel: +1-212-481-2050
Email: soko@tpg-ir.com
Shawn Qu
SOKO Fitness & Spa Group, Inc.
Tel: +1-908-208-8681
Email: shawnqu@sokofitness.com
Judy Jiang
SOKO Fitness & Spa Group, Inc.
Tel: +86-451-8770-2280
Email: judyjiang@sokofitness.com
Congratz on your success so far. How did you get wind of this initially?
I'm sure they'll uplist someday. For now, I'm glad they are focusing on improving their fundamentals rather than promising to uplist soon. Makes me feel like they know where their priorities are.
Good job. I only recently noticed this company, but I think I will be with it for a while. Assistant mod? Sure. What do you expect the next high to be? $5.4? I'm going to publish a solid article at seekingalpha within the next month or so with my estimate, which should be around there if not higher.
ahhh, I was wondering if "full position" meant 100% of your portfolio is in SOKF. Or if you hit a target number of shares. Looks like the later. Impressive either way! I've only got 12400 so far, but trying to catch up. I'm guessing the price will just bounce along until earnings are released in Sept. GL.
Nice. I was able to buy more at $4.01. What does "full position" mean?
I'm buying until SOKF constitutes 30% of my portfolio prior to their next earnings release. I met with management a couple weeks ago, and the next earnings should show some monstrous results.
I am meeting with a couple of SOKO's executives in NYC this coming Monday. If you have questions for them, post them here and I will get you their responses.
I can't privately respond to your PM. By written off, I don't mean I have given up hope on SIAF. I simply mean that I have mentally prepared myself to ignore its price action for a few years. But even if does go to 0, that's ok for me. I'm going to hold it all the way till then.
Cool. Are you also suing the "holders of the 10.8 million shares" for being in on all of this as well? Seems like they should have some cash hanging around.
As a NYC lawyer familiar with these issues, I agree.
Joe, unless you are very wealthy or unless your lawyers are being paid on contingency, this lawsuit is really going to cost you. Litigation expenses are high enough normally, but here we have a number of witnesses and much of the evidence based in China. It will be particularly costly for you to subpoena China-based third parties. This litigation is going to cost well upwards of 100k, so I hope this factors into your financial plan. If you do end up going through with this, good luck... in my head, I have written off my position in this stock already and the legal papers will be interesting. Just let us know what court you are filing suit in so we can keep track of the papers filed. Thanks!
Same with me over the past couple weeks. Happy to keep buying and buying and buying at $4.
What law firm were the lawyers from?
I say just sue the guy. I will lose even more, but the satisfaction would be worth it.
What else do they need to crossoff before uplisting?
I posted another article on SOKF at seekingalpha: http://seekingalpha.com/instablog/333239-dhh/68368-analysis-on-soko-s-8k-legal-documents
Here's a reproduction (although the original has better formatting):
As a lawyer, I figured I'd at least take a quick look at the legal documents relating to the recent 10million USD financing. You can sometimes find good information buried in these documents. The documents as filed can be found here or here
Below, I quote some of the more interesting language and follow up with commentary. I'm not a corporate lawyer, and I scanned the documents really (really) fast, so my analysis is by no means complete.
7.1. Make Up Shares . If the audited financial statements of the Company for the fiscal year commencing on June 1, 2009 and ending on May 31, 2010 as reported in the Company’s Annual Report on Form 10-K for such fiscal year (the “ 2010 Annual Report ”) shows that the Company’s income: (i) before income tax, (ii) excluding income/loss attributable to noncontrolling interest, and (iii) excluding costs associated with any facility acquisitions undertaken by the Company (“ SOKO’s Income ”), is less than $10,450,000 (the “ Income Target ”), the Investors shall be entitled to receive (pro rata between the Investors in accordance with their respective Purchase Prices) an additional number of shares of Common Stock up to an aggregate of 60% of the Shares issued pursuant to Section 2, or 1,875,000 shares of Common Stock in the aggregate (the “ Make Up Shares ”), according to the following formula:
(a) If SOKO’s Income equals or exceeds the Income Target, no Make Up Shares will be issued.
(b) If SOKO’s Income is less than the Income Target, then within thirty (30) days following the filing with the SEC of the 2010 Annual Report, the Company shall issue to the Investors an aggregate number of shares of Common Stock equal to the product of the number of the Make Up Shares multiplied by X, where X is 1.00 minus the percentage of the Income Target actually achieved, which shares will be divided pro rata among the Investors in accordance with their respective Purchase Prices as set forth on Schedule A hereto.
>>It looks like SOKO is expecting at least $10,450,000 in annual income before tax for the fiscal year ending this month. If SOKO does not meet that target, the new investors get additional shares. SOKO should not have any problem meeting that target as income before tax for 9 months ending Feb 28 was already 8.2 million.
7.3. Board Observer . For so long as IDG-Accel China Growth Fund II L.P. and IDG-Accel China Investors II L.P. and their Affiliates collectively continue to hold two and one half percent (2.5%) or more of the outstanding shares of Common Stock, a designee of such Investors (who shall be satisfactory to the Company in its reasonable discretion) (the “ Observer ”) shall have the right to attend and participate in meetings of the Company’s Board of Directors. The Observer shall not be appointed as a member of the Company’s Board of Directors, shall have no vote as a director of the Company and shall have no approval rights with respect to any action of the Company.
>>New investor IDG gets to appoint a person to participate in SOKO board meetings. The observer won't get to vote, but should bring valuable insight as IDG is a sophisticated investor.
7.8. Listing of Shares. The Company agrees that: (i) if the Company applies to have the Common Stock traded on any Trading Market other than the OTC Bulletin Board, it will include in such application the Shares and the Make Up Shares, and will take such other action as is necessary or desirable to cause the Shares and the Make Up Shares to be listed on such other Trading Market as promptly as possible, and (ii) it will take all action reasonably necessary to continue the listing and trading of its Common Stock on a Trading Market and will comply in all material respects with the Company’s reporting, filing and other obligations under the bylaws or rules of the Trading Market.
>>This might be a standard provision, but it shows that uplisting is at least somewhere on the radar screen.
7.10. Use of Proceeds. The Company shall use the net proceeds from the sale of the Shares hereunder for working capital purposes and for potential acquisitions, facility development and other potential strategic initiatives.
>>This is nice. It means the company cannot waste the $10million by simply spending it on a huge bonus for employees.
Item 8.01 Other Events.
On April 16, 2010, the Company and the 2008 Private Placement Investors entered into a Settlement Agreement, pursuant to which the parties: (i) settled a disagreement regarding a US$200,000 penalty payment incurred as a result of the Company’s failure to effect a registration statement on Form S-1 on time pursuant to a prior Registration Rights Agreement, dated April 7, 2008, between them; and (ii) terminated an escrow agreement, dated as of April 7, 2008, between the Company and 2008 Private Placement Investors (the “ 2008 Escrow Agreement ”) and agreed to release to members of the Company’s management an aggregate of 8,000,000 shares of Common Stock which were deposited with the escrow agent under the 2008 Escrow Agreement to secure the Company’s obligation to the 2008 Private Placement Investors to achieve certain financial performance thresholds which were met. In satisfaction of the Company’s obligations under the Settlement Agreement, the Company issued 62,222 shares of Common Stock to Guerrilla Partners, L.P., 17,778 shares of Common Stock to Hua-Mei 21st Century Partners, LP and 8,889 shares of Common Stock to James J. Fuld, Jr. IRA.
>>I hadn't heard of this before, and I'm not too pleased with it. It basically seems like SOKO missed a deadline, resulting in $200k worth of dilution. IDG, with their observer, will probably make sure something stupid like this doesn't happen again.
8.1 Notices...
If to the Company:
No.194, Guogeli Street
Harbin, Heilongjiang Province
China 150001
Attention: Tong Liu
Fax Number: 86-451-8770-5544
With a copy (which shall not constitute notice) to:
Ellenoff Grossman & Schole LLP
150 East 42 nd Street, 11 th Floor
New York, NY 10017
Attention: Barry I. Grossman, Esq.
Fax Number: (212) 370-7889
>>On the face of it at least, SOKO seems to have retained reasonably qualified and ethical lawyers. It's not a one man shop.
Schedule A
Share Allocation
Investor
Purchase Price
Number of Shares
IDG-Accel China Growth Fund II L.P.
$6,470,800
2,022,125
IDG-Accel China Investors II L.P.
$529,200
165,375
Hua-Mei 21st Century Partners, LP
$2,100,000
656, 250
Guerrilla Partners, L.P.
$600,000
187,500
James J. Fuld, Jr. IRA
$300,000
93,750
TOTAL
$10,000,000
3,125,000
>>Who is this James J. Fuld, Jr. guy? How did he get to participate in this in an individual capacity? Because I could have almost fronted $300,000 and would have dearly loved to participate at $3.20.
5.3. Founder Lock-Up . The Founder and the Company shall have duly executed and delivered the Lock-Up and such Lock-Up shall remain in full force and effect.
3. Lockup . From and after the date of this Agreement and through and including the twelve (12) month anniversary of the Closing Date under the Stock Purchase Agreement (the “ Lockup Period ”), the Holder irrevocably agrees it will not offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase or otherwise transfer or dispose of, directly or indirectly, or announce the offering of, any of the Holder’s Shares (including any securities convertible into, or exchangeable for, or representing the rights to receive, the Holder’s Shares). In furtherance thereof, the Company will (x) place a stop order on all of the Holder’s Shares, (y) notify its transfer agent in writing of the stop order and the restrictions on the Holder’s Shares under this Agreement and direct the transfer agent not to process any attempts by the Holder to resell or transfer any of the Holder’s Shares in violation of this Agreement. Notwithstanding the foregoing, the undersigned may sell or otherwise transfer Holder’s Shares: (i) as a bona fide gift or gifts or pledge or pledges, provided that the Holder provides prior written notice of such gift or gifts or pledge to the Company and the Investors and the donee or donees or pledgee or pledgees (as the case may be) thereof agree to be bound by the restrictions set forth herein; provided, that any such gifts or pledges shall not, in the aggregate (adding up all such gifts and pledges), exceed eight percent (8%) of the outstanding shares of Common Stock at the time of any such gift or pledge; and (ii) on death by will or intestacy to the undersigned’s immediate family or to a trust, the beneficiaries of which are exclusively the undersigned and a member or members of the undersigned’s immediate family, provided that the transferee thereof agrees to be bound by the restrictions set forth herein.
>>The lockup agreement and provisions may be the most interesting part. The CEO and Chairman Tong Liu is not able to sell his shares for 1 year. As I recall, he owns over 50% of the company. No insider selling for 1 year! If he is that confident in his company, I sure am too! I am buying more.
Disclosure: Long SOKF; 10% of my portfolio, going to 20%
Themes: China Stocks: SOKF.OB