Good Morning,
After looking into this R/S, I would have never thought I could agree with the company.
A R/S may just be the catalyst that many months ago it was discussed, as an all out attempt to up-list and I believe it be sound.
Their are minimum requirements, but it appears the company may be on the road to implement a filing request for up-listing to Nasdaq.
The initial thought was WHY!! With just under a 1b O/S, certainly doesn't make sense, simply because the company losses the much need liquidity to attract the Foreign Hedge fund or the institutional firms that require, 1: a minimum share price and 2:, the liquidity to move in and out.
Now, before the company can file they must reach a thresh-hold of minimum common O/S (they will have), a minimum share price of top end, $4.00 to the certain allowed share price of $2.00 or $3.00 respectively by the guidelines set in place.
Of course they also need to have a certain number of shareholders, which they probably have now, but the interesting requirement is in the financial reporting earnings and this is where I believe the company is going.
We know that Mr. Wang owns many companies and as I have maintained in the past is that the R/M is always been about electric batteries, but that still remains to be realized, but more importantly is the other requirement of CAPTIZATION and it is here where the company most definitely can be in compliance.
We also know this company is a holding company without any entity as of yet, but certainly, Mr. Wang can accommodate the requirements.
They will roll one of his entities through transfers of assets into the USA holding company and I am almost certain that will come right after the R/S with a financial statement and THEN the filing to up-list.
Nobody likes R/S and the majority of these unfortunate moves never benefit the shareholder, but believe this may be a an exception and will give shareholders a solid ROI.
Remember $ amount stays the same in the pre-split to the post-split. With that said, the critical aspect of this move is the selloff in the pre-split. Many selloffs happen in the post-split where the real damage hurts your positions. I believe this may be minimized given the companies and the well conducted DD provide by many here.
It is up to the company to minimize the damage of a split to come out directly to offset this by releasing the financials, with respect to transfer of assets. Extremely important!
This company is now back on my very interest watch list and will consider a position after the split with a 2 week window. In previous splits that companies do, the rule is never buy until the 45 day window closes to temper the result of the split, which results in a major selloff.
Hopefully the company can temper this resolve sooner than later. The post split is the most critical in timing.
Have a good day
varok
