Pursuant to the terms of the Jinxinglong Exchange Agreement:
The remaining $12,000,000 of purchase price will be paid in installments over the next 15 months in accordance with the terms of the Exchange Agreement, a copy of which was included as an exhibit to the Company's Current Report on Form 8-K filed with the SEC on July 20, 2010 (File Number 10960377).
Pursuant to the terms of the Sanfan Exchange Agreement:
The remaining purchase price of $9,600,000 will be paid in installments over the next 15 months in accordance with the terms of the Sanfan Exchange Agreement, a copy of which was included as an exhibit to the Company's Current Report on Form 8-K filed with the SEC on June 4, 2010 (File Number 10878661).
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So, you have two major acquisitions in a very short time period by a thinly-traded, mostly silent, Chinese microcap. These acquisitions exceed current market cap. The funds required for installment payment over the coming months exceed cash flow. The Chinese microcap sector has been under scrutiny for transactions just like this that are fraudulant and designed to funnel monies to insiders. I do not know any answers and I am currently holding a small position (10,000 shares) but I am mostly considering that money gone. I think the answer to the riddle will one day be found related to these transactions ... either because they were fraudulant or because of dilution to make the installment payments. Good luck.
AI
