Re: FABU
Improved governance would only have value if FABU had any value. There's nothing left.
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The Company’s business in China appears to be abandoned. The Company’s retail stores are closed and empty. Management has been unable to determine whether the Company’s wholesale business is operating. The Company’s digital business – provision of digital content over multiple platforms – has ceased for lack of funds. Given the matters set forth herein, it appears that there is no Company personnel currently providing service to the Company in China other than Vice President Cindy Lv, who is assisting management in determining the circumstances in China. Operations in the United States continue.
The owner of the office facilities leased, in part, by the Company (the Chairman’s private companies occupy the vast majority of the space) in Beijing has foreclosed on the premises for nonpayment of rent and claims to have a judgment against the Company. The Company’s PRC counsel has been in contact with the landlord’s counsel to attempt to negotiate access to the facilities. Because the Company does not have access to the facilities, management does not have possession of the Company chops or access to the Company’s books and records.
