China Armco Metals Inc. (CNAM)

[viking86]

stock up 11%+ today. I think it's probably due to Yao surrendering 1.25MM of his shares pledged as collateral for a $4.93MM loan acc. to the YMB post below . Not sure if it's the Gentile loan that got Xao into trouble last year but market seems to like the implied valuation of the pleged shares.


Re: CEO disposed of 1.25 mil shares
1. The securities reported on this Form 4 were previously pledged as collateral (the "Collateral") for a full recourse note having a principal amount of $4.93 million plus accrued interest (the "Note") under which Mr. Yao was the borrower. Mr. Yao surrendered his rights in and to the Collateral in exchange for an agreement by the lender to cancel the Note in full.

Could this sub-note on the Form 4 submitted to the SEC tell you anything about the value of the company. If you do your math, the note holder was willing to CANCEL THE NOTE IN FULL in exchange for 1,250,000 shares and therefore values those shares at more than $3.94.

SEC Form 4 filed on April 15, 2011:
http://sec.gov/Archives/edgar/data/1410711/000112329211000293/xslF345X03/edgar.xml