Correct. They opted to build out their facility in Beijing which will have the capacity needed to meet current & future demand. They are reportedly currently in negotiations with a potential buyer for the Inner Mongolia property and expect to receive a substantial premium over what they paid into it for purchase and improvements (they've added electricity and water, and a small greenhouse, the purpose of which is to show they are "using" the land and not just letting it sit idle).
There has been much speculation, accusations of misdeeds and falsifying information, and unsubstantiated rumors floating around the various message boards, particularly on the GEO investing board by whitetiger and his crack lawyer named "Bob." :-) It's pretty much come down to a version of he said vs. she said, and I'm of the opinion the whole issue has become a sideshow that's dragging down the stock. Even if it turns out LTUS doesn't have any ownership rights in the land, they still have a very profitable (and growing) business that funded the building of their new state of the art facility in Beijing. No rational person is going to dispute the value of this facility, so that alone points to increased value. The fact that they're also providing housing for their employees on the top two floors, just adds to my conviction that this is a legitimate company with real growth prospects, that plans to be around for a while, and is not some fly-by-night outfit or bunch of crooks.
The fact that insiders own approx. 37% of the stock should also tell you something. They have a vested interest in being above-board in their dealings. Once this Chinese reverse merger hysteria blows over, legitimate companies like this one will start to reflect more appropriate P/Es. JMHO. I'm long.
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