Hong Yuan Holding Group (HGYN)

[Davedus]

My take on this is that the company is understandably afraid of the possibility of being subject to a hostile take-over. The ability to have a R/S followed by a big dilution of the stock is a big deterrent to any would-be take-over predator, as, if the predator had acquired 50% of the shares, the company could cause him to subsequently have only, say, 5% of the shares. It isn't that the company has any present plans to take such actions, rather they need stockholders of record on the 15th to vote yes so the company can legally pose such a threat. Then there will likely be no hostile take-over attempt, and the company won't have to take such actions to fight them off.
In this regard it is preferable to the company that the stockholders have a long-term interest in the company, not merely looking for a fast buck. Therefore it is to the company's interest if the price goes up nicely next week as that will tend to flush out a lot of the mere fast buck seekers without any interest in the company as they will be tempted to take their profits and run. So that is possibly why there won't be any stock dilution next week--to help raise the price to tempt the exit of the fast buck stockholders so proportionately more of the stockholders are investors and will vote in the best interests of the company--which is to have a credible defense against a hostile take-over. Hopefully behind the safety of that shield the company will be able to develop to the benefit of both its investors and itself.