Replies to post #538 on China Dom. Bio-tech Hldgs Inc. (fka CDBH)

[Potse]

db7...CDBH shell status......

Potse, any new material out there? Wondering if we are back to being a shell since Qingyu Meng's departure......

Since Qingyu Meng no longer has any management/director position with CDBH, I am assuming that the reverse merger with Daqing Moringa will not get completed. I am not 100% certain of that, but until the company puts out some information that states otherwise I am working under the assumption that CDBH is still a shell and looking for another RM target.

The only things of significance that I recall seeing in the time since that post you are responding to are related to Daqing Moringa.....

1) Job postings have continued to show up. As late as yesterday the company has been looking to fill positions related to the new industrial project (Jiangxi Sheng Yongsheng Pharmaceutical Co.).....

http://translate.googleusercontent.com/translate_c?depth=1&hl=en&prev=/search%3Fq%3D%2522%25E6%25B1%259F%25E8%25A5%25BF%25E7%259B%259B%25E6%25B0%25B8%25E7%2594%259F%25E7%2589%25A9%25E5%2588%25B6%25E8%258D%25AF%25E6%259C%2589%25E9%2599%2590%25E5%2585%25AC%25E5%258F%25B8%2522%26num%3D100%26hl%3Den%26lr%3Dlang_zh-CN%26safe%3Dimages%26sa%3DX%26tbas%3D0%26biw%3D1008%26bih%3D632%26tbs%3Dlr:lang_1zh-CN%26prmd%3Dimvns&rurl=translate.google.com&sl=zh-CN&twu=1&u=http://zy.job1001.com/Company_Detail.php%3FCompanyDetail%3Dcm1289465931324&usg=ALkJrhgKQrm5XqhRuPl-_43qef892jReAA

2) If I recall correctly, Daqing Moringa officially received permission from the Chinese government to be foreign-owned sometime during August/September of 2011.

3) A December 2011 report on industrial projects under development mentions Daqing Moringa (China housefly biotechnology holding company, and Jiangxi Sheng Yongsheng Pharmaceutical Co., Ltd.) twice. The first mention (Section 1, #13) says that the $21+M financing is coming from bank loans. The second mention (Section 2, #14) says the project is being self-financed (doesn't specificy how much is coming from internal funds and how much is from equity-based financing).

http://translate.google.com/translate?hl=en&sl=zh-CN&u=http://www.fzdpc.gov.cn/xmxx/201112/t20111216_1225498.html&prev=/search%3Fq%3D%2522http://www.fzdpc.gov.cn/xmxx/201112/t20111216_1225498.html%2522%26num%3D30%26hl%3Den%26safe%3Doff%26prmd%3Dimvns&sa=X&ei=mf6LULPkJeeqywHMtYDwDQ&ved=0CCUQ7gEwAA

My guess is that because of economic conditions and negative China stock sentiment the company may have had difficulty in completing the financing subscription. Either that or some other issue may have derailed the reverse merger.

The QMIS Finance Twitter account hasn't had any new postings since October 2011, so that doesn't provide any easy/potential clue as to what may happen to the CDBH shell.....

http://twitter.com/QMISFinance

One thing I am certain about: It is absolutely critical to those of us who purchased the shell that the person who is now in charge of CDBH (Yung Kong Chin) treats the shell like what it is (50K shares outstanding, and a market cap around the $400-600K area) and structures any reverse merger in a fashion that makes fundamental sense.

Part of the problem with some of the previous Meuse-related China reverse mergers didn't have anything to do with negative sentiment related to China stocks. The fundamental quality of the operating companies and the structures of the reverse mergers simply did not support the $5-10+M shell valuations that many investors were paying.

I think most of us CDBH shell investors purchased the shell at valuations below $700K, so not very people can say our investments were completely nonsensical from a valuation perspective. CDBH, unlike many of the other similiar shells at the time, never did experience that massive/speculative surge in valuation.