just spoke to the company...
I emphasized I would like a PR to address concers about this share sale and its reasons, although whether there will be a PR or not is up to senior management, we don't know yet.
Points:
1. about 40 million cash on the balance sheet is already earmarked for use over time between cap-ex commitments for the expanded feed mill and the value-added plant, and land, aquaculture, etc.
2. The roughly $10 mil proceeds from this are to be used to expand the neutraceutical business in retail. They are going to build a flagship store in a very high-traffic area of Hainan. expenses for that may approach 5 million. The other 5 million is for establishment of franchises in Beijing, Shanghai and other areas of mainland, and Hong Kong.
3. Ultimately there is a goal of spinning off the new retail business to shareholders.
4. Ladenburg has already locked up all the unit sales. Company and Ladenburg attorneys have it all done. They did not announce this during earnings because it's separate from that.
Forgive my poor explanation here, I'm new to HQS and am by no means converse on this company.
I spoke to Gene who's # is on the website.
Very pleased with the conversation.. although my representation of it may be lacking.
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