CDS > CDSDD email sent to company this weekend
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Dear Sir,
I am a shareholder and believer in the CDS story, but I have a number of questions and concerns re. the Friday announcement of a reverse & forward split:
Although you've had a recent conference call, announcement of a share buyback, and PR re. the recent drop in share price, I've never seen any mention of splits.
Why is China Direct able to effect this type of move when almost every other company must receive shareholder approval? These moves are usually undertaken with a proxy statement aren't they? Have i missed a filing?
An unannounced move like this could lead to lawsuits from small shareowners who will have a taxable event triggered when they could have chosen to buy the requisite number of shares to avoid a cashout. Why couldn't you have set a date that would give the oddlot holders a chance, if they chose, to buy?
I also have some questions about the mechanics of this action. The old CDS shares are retired and a new CUSIP is added. Do those people who have shorted CDS shares have any responsibility? Or do the broker-dealers have any responsibility to locate and bring in shorted shares?
Many Chinese small caps have had their share prices suffer significant declines. Do you have any idea how many shares might have been created via naked short sales? And if so, does this reorg force any buyins from those who have no locates?
Finally, do the shares which you are "repatriating" in this reverse/forward split count as part of the 2.5million share buyback?
Feel free to call me at the below number if you are able and TY for your attention to these questions.
TRADING: "More Signal...less Noise"
LIVING: "One World, One Family, Warm Heart" Dalai Lama
