Replies to post #5407 on YaSheng Group (HERB)

[RealDutch]

The company's shares will cease trading

I'm confused now, why does it say here that the shares will cease trading? MSAH and CMFO are examples of companies that also went dark, and they are still trading.

[aandt]

I don't believe the shares will stop trading, I am seeing quite a few companies that have filed form 15 still trading many months later on OTC with a stop sign. I believe any reference to "stop trading" means they no longer trade on a listed exchange (if they were) but they move to Pink sheets. HERB is already there, so no change.

Also I think it is important to note that HERB filed form 15-12G they did not file form 15-12B. There are differences.


15-12B seems to be for going dark entirely https://www.investopedia.com/terms/s/sec-form-15-12b.asp

This form is used when a company goes private and must register existing securities.

15-12G seems to indicate suspension of filing reporting duties, among other things.

https://www.investopedia.com/terms/s/sec-form-15-12g.asp

The Form allows issuers to seek termination of a registered security class or suspension of duty for filing SEC mandated reports.

I looked up the archives of 15-12G filings and looked into a few of them. I went back into 2020 to see what has happened between when they filed and now. All the ones I looked at are still trading. Some haven't filed anything since but are still trading. Here is what I used to search the SEC archives - https://www.sec.gov/edgar/search/#/category=custom&forms=15-12G

A few that I looked at have switched to OTC disclosure and started filing there and are now current. Here is one example- https://www.otcmarkets.com/stock/SNNC/disclosure

So we will see what comes next. But in my opinion, we are seeing the first step of a plan with more actions to come. We also are seeing activity in their California registration, which would indicate they are doing something with the company.