Yangtze River Port & Logistics LTD (YRIV)

[finesand]

Update (EDIT): (1) China Deal Delay Again (2) Margin Calls (3) Discovery Stay (4) Offering (5) SEC Investigation

(1) China Deal Delay Again
https://www.zerohedge.com/news/2019-05-02/heres-why-stocks-suddenly-tumbled

We expected something this Friday .. maybe not.


(2) Margin Calls
https://finance.yahoo.com/news/chinese-firm-apos-plunge-cost-080000161.html

This article explains the last plunge quite well, IB (Interactive Brokers) had $59M losses due to YRIV collateral stock on margin. Later reduced to $42M. The selling may continue, if not completed - we have to see how they deal with it.

Maybe such margin call also forced Coleman & Co to sell down to 40c.


(3) Discovery Stay
In the lawsuits against short seller (defendant), the latter won the motion of 'discovery stay'
See last ORDER 4/22 https://iapps.courts.state.ny.us/nyscef/DocumentList?docketId=/vGxeiEYXWPzJmLvE4nGvg==&display=all
Implying further delay into June 2019.
Plaintiff YRIV lost their attempt to continue the discovery.



(4) YRIV's ATM Offering of around $100M or up to 67M shares
https://www.sec.gov/Archives/edgar/data/1487843/000121390019006523/f424b5041619_yangtzeriver.htm

.. doesn't really help the much higher valuation pre short selling.
However, it would give YRIV the required funds to serve the outstanding debt in China. Serving this debt is probably required to retain the land rights in the first place, as it was given to YRIV with the pledge to cover same debts.

It is a quite complicated and risky valuation of course, fascinating.
Will update the above in the blog comments later, just a short heads-up.

(5) SEC Investigation
EDIT: There was a Hindenburg FOIA SEC Request denied due to potential ongoing law enforcement investigations .. last days.

So that also may have helped w/ the latest plunge.