China Dom. Bio-tech Hldgs Inc. (fka CDBH)

[Potse]

OT: temp luvs amy...IYSA/CNYD....

"I was a holder of IYSA which eventually became CYND after a few chinese acquistions. They made the R/S into childs play, and got the stock over 10$. I held shares at a penny and a half.

Each step was dilutive, but the business models of the acquistions appear to be sound."

I am very familiar with IYSA/CNYD, as I had accumulated a position following the announcement of the merger and prior to the first reverse split. I had made a number of posts about it over on Raging Bull and Investor Village. I think I was averaged in around 2.5 cents. There were a total of three reverse splits on that stock (1:10, 1:10, and 1:4).

IYSA/CNYD would have been an incredibly attractive investment for the shell/early investors had it not been for that completely unexpected (and massive) share issuance to the owners following the first reverse split, if I recall correctly.

Prior to investing in the stock I had gone through the merger documentation/agreement sentence by sentence to make sure there wasn't anything negative lurking in the RM, and it came up looking perfectly clean and absolutely beautiful. So when that massive dilution showed up and the company/consultant claimed that it was part of the merger agreement, I couldn't believe what I was seeing. Nowhere in that documentation was there even one single hint or indication of an impending dilution to the owners. To this date I don't know whether the absence of that dilution in the merger agreement was done intentionally or just a boneheaded mistake by whoever wrote/assembled the filings and agreement.

After going through some later filings involving the financing by Pope Investments, it became very obvious to me that both the company and the institutional investors knew right from the beginning that dilution was going to occur. But thanks to their failure to disclose it in the filings at the time of the merger, the retail investors in the stock ended up getting completely blindsided by it. The China company itself is very solid and attractive, but that dilution fiasco certainly left a sour taste in the mouths of a lot of the earlier investors.