Liquidmetal Technologies Inc (LQMT)

[joshuaeyu]

why did he pledge the LQMT shares to Eontec?

WIN WIN



Here's the legal document that reference the "pledge'

http://www.cninfo.com.cn/finalpage/2016-03-14/1202040775.PDF

Here's the condition of the "pledge"

Upon Liquidmetal Technologies meeting following conditions, Liquidmetal Ltd shall transfer all of its owned Liquidmetal Technologies Inc. shares to Eontec,

(a) Liquidmetal Technologies, Inc. achieved a turnaround in profitability and eliminated major uncertainties in business operations and profitability that could generate sustainability benefits.

(b) Comply with regulatory policy of China "Domestic Enterprise foreign investment" and "Foreign Enterprise acquisition".

(c) Meet the regulatory authorities in the listed companies (major) asset acquisition supervision of the underlying assets of the profitability and legal compliance and other related requirements.

Here's the profitability and legal compliance condition of Nasdaq listing.

https://www.investopedia.com/ask/answers/nasdaq-listing-requirements/

Standard No. 1: Earnings
The company must have aggregate pre-tax earnings in the prior three years of at least $11 million, in the prior two years at least $2.2 million, and no single year in the prior three years can have a net loss.

Standard No. 2: Capitalization with Cash Flow
The company must have a minimum aggregate cash flow of at least $27.5 million for the past three fiscal years, with no negative cash flow in any of those three years. In addition, its average market capitalization over the prior 12 months must be at least $550 million, and revenues in the previous fiscal year must be $110 million, minimum.

Standard No. 3: Capitalization with Revenue
Companies can be removed from the cash flow requirement of the second standard if its average market capitalization over the past 12 months is at least $850 million and revenues over the prior fiscal year are at least $90 million.

Standard No. 4: Assets with Equity
Companies can eliminate the cash flow and revenue requirements, and decrease its marketing capitalization requirements to $160 million if their total assets total at least $80 million and their stockholders' equity is at least $55 million.