Lihua International Inc fka LIWA

[michaeldesanta]

Good and Bad, depending on how things play out.

So the latest news is that:

1. The supposed Wuxi Industry Development Group Co., Ltd indirectly owned Power Apex Holdings Ltd. has purchased 44% of the company from Mr. Zhu Jianhua (last name, first name - as is Chinese custom). If the alleged statements are true, as are all alleged statements with Lihua International, then this suggests that the Chinese government has something to do with it, as Wuxi Industry Development Group Co., Ltd is state owned.

No details of the transaction were shared, so for all we know, they paid 1¢/share or $1 million/share. We don't know. It just sounds a little fishy to me.

If Power Apex Holdings Ltd. is truly affiliated with the Wuxi Industry Development Group Co., Ltd as professed, then this might be a good thing for shareholders. However, if it's just snake oil like everything else Lihua International has provided investors up to date, then it will do nothing more than confuse the bag holders.

I've found very little substance on Power Apex Holdings Ltd, other than that it's apparently wholly owned by Henry Winata Karim by way of Pachmar Limited. I fail to see how this is controlled by Wuxi city government?

2. NASDAQ has issued a warning to delist the stock if the company fails to come up with an agreeable plan to address the missed filings.

This was due yesterday, and so far all we've seen or heard are crickets. I'm expecting NASDAQ or the company to file another announcement with the results once a decision has been made. Hopefully, this will be soon. Whether it gets delisted or not, shareholders just need some closure. If LIWA doesn't get delisted, then perhaps there's a chance that a successful audit and board action will recover some value for shareholders. If LIWA gets delisted, it will be a mad rush to sell on the pink sheets or grey market to short sellers wishing to cover and close their short positions, so whomever sells first will get to cash out.