Yubo International Biotech Ltd. (YBGJ)

[Potse]

Authorized share increase......

They filed an 8K yesterday increasing the authorized number of shares from 120M to 1B. Is this good or bad?

It depends on how each investor wants to look at it. There are both positives and negatives to an authorized share increase. From my standpoint/viewpoint, it is not something that overly concerns me. It was something I was semi-expecting, and it is necessary.

From the moment Lina Liu purchased control of the shell, it was obvious one of two things would need to happen eventually so the incoming reverse merger target could have sufficient capital flexibility to operate. Either a reverse split would need to occur, or an authorized share increase.

Although an authorized share increase can obviously lead to unwanted/excessive dilution and an abuse of the share structure, it can also provide the capital/support a company needs that will ultimately benefit the retail shareholders.

I've been intrigued by the potential of this reverse merger since the first time I started looking at the RM target. It definitely would be nice/helpful to see YBGJ improve and increase its activity on the investor relations side of things. I think I remember seeing a few weeks or so ago that the company had about 15-20 job openings. If I recall correctly, one of the job descriptions included website/video design and production. So maybe we will see some improvement in the IR department at some point.

I think the potential growth for this biotech startup could be significant (both organically and through strategic acquisitions). YBGJ's key personnel have significant connections to other biotechs. The new biotech park the company is moving its headquarters to obviously has companies that could be complementary or merger/acquisition targets. Just based on the somewhat limited information I have been able to glean from filings, the company's website, and snooping around various places on the internet, I think progress is being made.

A lot of things could go very wrong here. But a lot of things could also go very right. I am willing to give the company an opportunity to prove whether my confidence in the stock is right or wrong.