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What kind of response are you expecting?
I’m trying to be as real as I can be here. This remains a very good shell. The owners are still very connected. There is still amazing opportunity here. It’s just going to take some more time. Nobody expected that. We don’t know why they chose to alter course.
There’s a lot of good reading out there around why custodianships, mergers, and SPAC’s are having problems in today’s market and why companies would want to back out of going public right now to pursue alternative private sources for raising capital.
Nobody is buying much of anything in this market. Reality is don’t expect much in the near future here. It’s going to take some time to put a new deal together or have market sentiment reverse. The shell will get sold again at the very least. Hsu via Orient Express owns the shell.
We all had high expectations, but this market got ugly very quickly. The vast majority of IPO’s, SPAC mergers, and shell mergers from the last year have fallen apart, been put on hold, or lost significant cap value.
The potential of a sec reporting current clean shell will always be there.
We may just be on “pause” until market sentiment changes course. A big benefit to being public is the ability to sell shares to generate capital, but you need demand.
I think this is a huge reason many mergers are being abandoned lately, albeit shortsighted. Companies see short term costs to going public with no ability to maintain share price while generating capital, again in the near term, which means pissed off investors.
Realistically, a company should go through the process now, since it takes a while, so they are positioned to do offerings once the public is ready to invest again in the next cycle. At some point, interest rates will still be high while the market begins its reversal. SPACs dissolve after 2yrs to my understanding. In a year, we could see an environment where clean shells are in high demand again. All imo.
Also, the fact that Hsu is sole officer/director means the shell goes with him imo. I like the connections of that mining company. Great place to get contacts for businesses dealing in “organic industrial chemicals”.
Longer wait but I think there’s still serious potential here.
I always think of it as 1 = 1. Nothing is free.
Shares will be issued in some way shape or form for every asset or every dollar changing hands.
The question is in what way and at what value will shares be issued. If preferred shares are issued, you have to pay very close attention to convertible rates.
If I’ve understood the custodianship process correctly, they have to be a significant shareholder to even petition the court at first. Essentially, you are saying that as a shareholder, you are taking over the company because previous management/owners have “abandoned” it. Like a squatter that wants the house. You have to have a piece of the pie to start the process.
The court is determining ownership or who’s responsible for the “property”, but the company still retains all its liabilities regardless of who’s owns it or how messy.
Ok, connecting dots…. Since that “starting new position”, he’s liked things from Baughan group….
https://bongroup.com/about-us/
Corporate hq conveniently in WV, where Terramite was, his light tractor manufacturer.
Possible…
I’m interested to see when he formally announces his “new position”. However, they could have just decided to sell the shell again or hold it idle to ride out the markets. A lot of IPO’s from last year are down 50-75%. SPAC’s are failing left and right. How many successful mergers from 2021 do you know about? All the ones I follow haven’t completed, stalled, or have failed.
There is no market sentiment to sell shares to raise capital. That makes going public unattractive right now. I think we’ll see market sentiment turn at some point. Couple that with sky high bank interest rates and we could see another flood of shell mergers as companies look for cheaper financing options. We’ll just have to let it play out. SPAC’s got a bad rap, which could maybe be a positive in the future for otc shells.
I’ve always understood it to be more like buying a dilapidated home. It’s not ready to move the family into without some cleanup. Get rid of the squatters (old shareholders). Once cleaned up, now you can move in all your belongings. I guess a lot of this depends on if it’s a merger or acquisition, which are different but get lumped into the same bucket.
At the end of the day, I just know that most of mine over the last year have failed. Lol
The way I always see it play out…
-new CEO takes over and share structure gets jacked with in one way whether issuing management shares, split, preferred, sched A, blah blah
-then, the public ticker will “acquire” the private company. Typically the target company is tied to the new CEO. This is usually done by issuing new shares to the owners of the acquired company in exchange for the assets. The shares issued are typically restricted. Sometimes convertible preferred shares are issued, sometimes just common.
However, it is technically the public shell that acquired the private entity.
Unfortunately, you may be correct. In uncertain/questionable times, fear is the easiest emotion to embrace.
Hopefully, we get some updates soon. It may take longer than we all wanted, but I like the potential prospect of a larger merger. I believe this group is much more connected than the past few owners of the shell. I’m also not 100% convinced Nam Liong is done with the shell. We’ll see. Can’t blame folks for wanting to take cash and/or find something else in this market.
I’m wondering if one of Hsu’s business connections offered them a pretty penny for the shell. For as fast as they were moving, it’s a very sudden change in directions with major financial implications for a corporate environment. Also, that decision was concrete enough to push the updates in SEC filings.
Maybe I’m overdosing on hope… however, this whole thing is perplexing, down to the odd share distribution.
At the least it’s just another addition to the list of failed merger tickers from 2021. Such a shame to waste an SEC reporting ticker like this.
The merger/acquisition space really went to $h!t fast imo.
Let’s hope the shares went to strong hands
Same here. The shell is still valuable. I can wait.
That’s my understanding. Supposed to be in the same industry. I’d assume Hsu knew that going into this.
I recommend following our CFO on LinkedIn. “Denny” Hsu posted on LinkedIn a month ago that he was changing positions using a canned graphic…. But didn’t fill out the title of the new position.
His title for NamLiong SkyCosmos is “Group” CFO, not just CFO. It’s the only title listed as “group”.
5d ago he liked this article…
https://www.linkedin.com/posts/kuehne-nagel_kuehnenagel-supports-the-construction-of-activity-6936930968213544961-YJ3f?utm_source=linkedin_share
I feel like some sort of curve ball is bubbling up here. He has a couple more fairly recent green energy/biofuel likes, where most of his older stuff is all tied to textiles and sustainability.
OTCM does have the “unsolicited” warning on the overview page for each ticker, assuming they are good about updating it automatically.
I believe you also still need a 211 or you’re stuck with unsolicited trades only when you come back from EM.
At this rate, the OTC will be full of unsolicited trading tickers. Seems like that never used to be the case, but you also used to hardly ever come back from EM. Lower volume, huge spreads. Becomes easy to see the role MM’s play.
Market cap <$2M. There’s a good chance that whatever happens in the future will support at least the current pps. So it’s attractive at this level.
I’m wondering if this is the start of Orient Express taking over SkyCosmos. We’ll have to wait and see. I did say I thought the share structure looked like OEC. If Hsu is the controlling shareholder, then him being CEO probably makes sense. We’ll have to see where this goes. I just keep reminding myself, they paid a lot for the shell (with cash) and have lots of tax credits to use.
Hsiao siblings out and Hsu as CEO. We’ll have to wait and see what this means. With Hsu as controller of Oriental Express, who knows.
The unsolicited trading, but current tickers are thanks to the rule change. NL$C is another. It seems that when you get pushed to EM for insufficient financial information, you get removed automatically once the financial information is submitted. However, the companies stay unsolicited trading because a Form 211 is still required to allow proprietary market maker quotes. We never used to see companies come back from EM because they were there typically due to shady business and you had to undergo proceedings with the SEC. Getting off EM for delinquent financial information is as easy as submitting that financial information. The companies I have seen this happen to are SEC reporting.
I’m not as bullish here. They haven’t been able to turn their demos into orders for some reason. On the surface, their tech seems sound, so I don’t know. They’ve diluted a lot since I first jumped in. When I was first in here, the OS was <100M.
IF they can somehow get some orders, the price will jump nicely.
OS has gone up a bit since then
$NLSC on watch!
Namliong SkyCosmos. Merger in progress. Name/symbol change done. Waiting on confirmation of merging assets. OTCM already updated with the SkyCosmos website. Nam Liong as a whole is multi-billion.
SEC reporting. Micro float. $49M in loss credits.
Shares available while they last. This one has been hard to get into.
$NLSC on watch!
Namliong SkyCosmos. Merger in progress. Name/symbol change done. Waiting on confirmation of merging assets. OTCM already updated with the SkyCosmos website. Nam Liong as a whole is multi-billion.
SEC reporting. Micro float. $49M in loss credits.
I don’t. You don’t. Somebody does.
Not everybody checks trades. Those of us doing this long enough know what to look for. If somebody paints it down and causes just one holder to think the deal is off or entices them to reduce their stake, then they’ve accomplished the goal of getting shares.
Last year was a tough one for mergers. Lot sof companies going public didn’t live up to the hype or hurt legacy shareholders.
Don’t look at it as Apollo Global as a whole. Look at the pieces and what goes in.
Remember, Ta Hsin registered Orient Express. Sky Cosmos exports for Ta Hsin. Ta Hsin is linked to Nam Liong. Sky Cosmos or other parts of Nam Liong could already be owned by Orient Express and be part of the reason why there are so many shares there. Mars Global or PG Max on the filings was a light tractor manufacturer in WV. They appear to be stand alone, so that could make sense. They still own a large building warehouse there. Maybe the share % directly given to the Hsiao siblings represent their true ownership in everything captured under the Orient Express umbrella? Lots of possibilities.
Somebody wants this low to create doubt. They tried to sell it down with 50 shares and it didn’t move the price.
Actually, that’s a damn good idea for these guys. Many people are switching to battery mowers. Low voltage solar charging on top of your shed for an ecell mower. That sounds like something people would pay for. Especially if you could have the mower recharged in a day.
Were all in this together. I find comfort in the fact this is an existing company and we didn’t go through one of the major custodian groups.
Way too many mergers facilitated by the main players in the custodianship/shell space that included a fledgling company have not gone well for legacy shareholders. It’s been brutal.
Honestly, it makes me feel like there are only a small number of individuals working on this. That would be one reason for a drawn out timeline. They need the transactions to be secure and the interface intuitive at launch for most functions. Takes time to program. Takes time to test. Maybe less interested in a trading stock prior to a functioning product?
The shell merger process lost a lot of its luster after the Krisa fiascos, poor Alpha plays, Synergy failures, DE custodianship denials, etc. The recent CE and scam finding on A/\PT, MJW|_, and !C0A don’t make things any better. The GS shells can’t even get their act together.
You are correct though, the biggest worry I always have when a new company takes over is what they’ll do to legacy shareholders. New management doesn’t want to give away ownership.
What you are really hoping for is the assets rolled in are worth more than the % of ownership you lose in the split or issuing of management shares. There is almost always some sort of significant ownership reduction of legacy shareholders when new management takes over.
It could. It seems like they want the shell for the tax credits, not to sell shares. They could have opened the taps already. There’s no imminent rush to complete things to keep the lights on.
As has been stated, the longer this takes, the better I believe it will be. The tax credits alone make this a profitable venture.
We are going to need some help with liquidity if we want active trading. Not being able to buy shares will turn folks away. However, Im not giving mine up… :)
I can’t wait until they strip out some of the pre-merger language. It’s easy to misread the outdated merger language as current info. My heart skipped beats for a bit before it said “sole officer”. That’s how I knew the info was outdated. This paragraph was before Hsiao took over.
“We are not prohibited from pursuing a business combination with a company that is affiliated with our management, but we have no plans to do so. We do not plan to retain a significant equity position after closing of any acquisition and management does not plan to continue as part of the new management team.
We have not selected any specific business combination target. Our sole officer and director presently has….”
This is clearly outdated due to the reference of sole officer and director.
Nice. Doesn’t look like anything new in there that I could see. Still a lot of old info describing firefish transactions.
It all depends. If they’ve been able to use off the shelf industrial components then the main proprietary piece is the plc software. However, this is specialized power regulation. My guess is there are some proprietary controllers or regulators involved. Those have to be manufactured if they involve a custom pcb design.
This may not even be an issue for them. My point was the PR’s read like marketing/sales pitches and don’t address real concerns with their business. I just don’t get a sense they are being fully transparent. Maybe I’m wrong. Other operating companies seem to be way more transparent about business challenges and explaining their need for selling shares.
Wonder what the lead time on a proprietary controller is these days? Sourcing supplies for industrial controls right now is not quick or easy. Most of our lead times on components and fabrication are 100% longer than 2 years ago.