YaSheng Group (HERB)

[RealDutch]

Here's what I think. They are not swapping out GAAT. They are swapping out the 7 subsidiaries of GAAT, with GAAT maintaining its hemp know-how, marketing efforts etc.

It doesn't matter to GAAT whether they have to buy the seeds from one of their subsidiaries (before the swap) or their sister company (after the swap). They are responsible for delivering the seeds to their JV partner in Inner Mongolia. And for sales, export etc.

Here is the stated goal regarding hemp from the latest 10-K

(j) Enter into a Global expansion for HEMP industry business

However, GAAT (HERB) is a minority partner, presumably. Because the JV partner in Inner Mongolia owns all the land. And that means they can't book the sales as revenue. Only the profits as "other income".

It's going to be a pretty impressive company if you get all that Hemp, powder milk and mining stuff on top of the plantations. Or, I could still be wrong about the Hemp.