Replies to post #61057 on Hong Yuan Holding Group (HGYN)

[Renee]

Fair point, Hi_Lo. The Court will need to reply to Horizon's Filing as soon as practicable, so Scheer had better have a bonafide Financier in place by the time of Horizon's Hearing, or the Judge will rule in favor of Horizon.

OK....I have said enough for today, so I'll finish by hoping that Scheer does have a Financier in place and for CERP stock to continue trading for shareholders' sakes.

[motionjoe]

r/s does not automatically signal an outside investor is on the wings and waiting to come in. it could also signal that the intent of a r/s is to isuue new shares, which would mean dilution for existing shareholders. further, an r/s would nit impact total company value nor would it impact the cut (of the company) for existing institutional shareholders who most likelyhave anti-dilution protection. it wouldlikely impact regular shareholders like most ihubbers.

all of this imo

[badslinke]

Isn't it possible that the R/S was filed as part of a negotiation strategy with Horizon? i.e. CERP filed the split to tell Horizon they would get paid by means of further dilution after R/S. Horizon decides it's not good enough, goes forward with the auction under their rights, and CERP moves to CH 11 to stop the auction.

That fits the timeline and series of events, I believe. If this is the case, the judge needs to decide whether the R/S and subsequential dilution amounts to enough operating capital for a proper CH 11.

In truth, I doubt the MammaCangura contract will bring enough revenue to float the company on its own.

This is what I believe the RS was really for.