Replies to post #1587 on Biostar Pharmaceuticals, Inc. (BSPM)

[finesand]

Financials For Production Relaunch / Sales Platform

Facility upgrades for GMP certifications and required production material were all prepaid and accounted as long term assets, see 10-Q F-14 - $25M deposit less intangibles.



Due to production start, the deposit shall become a current asset now.


The short term debt of $2.4M 7.8% loan currently is currently 'at will' and they negotiate a proper extension. It has been guaranteed by assets and considering the mentioned deposit and the debt/equity ration of only 6.72%, it shall be no issue here.
Back then DD'ing FTFT we have seen far worse constellations, but Chinese companies often operate with such lag of regularities.

Next ER shall also remove the going concern note, thanks to the received GMP certificate renewal and hence upcoming production relaunch.

The 2.5 years lack of production decimated company's revenue from mid double digit millions per year down to low single digit millions. It also raise company's BK risk significantly as stated in the going concern note. This was the reason we didn't play it for long before latest event.
We consider this company now extremely risk reduced and their production seems to be fully funded.

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Share Structure, Ownership

OS is 2.64M common shares (10-Q) as of 2017-11-20.
CEO Wang owns 0.4365M
Institutions own 0.0304M, increased by 21% last period.
Total of 0.4683M shares or 17.76% of OS.

Free float is 2.1689M or 82.4% of OS

Declining Short Interest is just at 0.0912M 4.2% of float now.

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Sales Platform and Timing

Today's PR Plans to Launch a New eCommerce Sales Platform, disclosed an expected timeline also for production start.

We intend to complete this platform by the end of March 2018 and will be officially put into operation in the second quarter of this year.

Meaning until end of March we expect certain guidance to be communicated regarding growth due to production relaunch as hinted in previous GMP reissue PR

as the Company makes preparations to carry on with the implementation of its business plan and growth objectives

The Sales Platform will allow B2B and B2C business, like utilizing the major platforms like WeeChat or Weibo - usual business practice in China. Therefor this is the consequential step for executing sales starting in April 2018 after production launch in March. These dates may be pushed back 1-2 month, but this shall not impact the expectation of the recovery of the company.


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Disclaimer: This is not an investment advice. I am long, but may trade at any time.
Charts courtesy of 01, DD partner in crime (o8>