The owners still hold 177 mil shares, around 40% of the company.
If as it happen, the company is profitable. Then I think they would rather buy out shareholders than to inhibit potential growth and income by keeping company as a shell. Also, with less than 50% holding. They will not have control of the company for long. We’ll vote out the directors.
Ok, by my rough calculation. From IPO the company receive $6 mil, minus $1 mil floating cost. That leave $5 mil.
They sold / transfer 64 mil shares. Worth say $2 mil.
So far, they’ve gain about $7 mil… scam money
You have to ask yourself, netting $7 mil from scam. Is it worth it, loosing your family company. With annual revenue of $100 mil per year and potential net profit of $15 mil per year.
Morgan did an analysis of the company 12 months ago, iam sure they would have verified the revenue and profit and market shares before releasing their report. Unless the number was fake..
The auditor verified the cash with the bank directly, XPD could not have fake it. Sure they could transfer the money into the bank just before the audit, then transfer it out again. But it still shows, the money is there. The $40 mil cash does exist.. which demonstrate that the company is profitable.
Gain $7mil scam money, and loose $15 mil profit per year, what will the owner choose?
Also, who say Aussie investors cannot get access to the assets held in China? If we push hard enough, get support from the Australian government. The Chinese regulator will yield. Chinese government only protect state own enterprise, if they have to scarify small private company like XPD, to get on the good side of the Australian government. They will, so don’t think we cannot get to the directors in China.
Also, we have ACA, the Singaporean large holder. They are a large Chinese speaking fund that knows how to operate in China. They hold 40 mil shares, that are not going to let it go that easily.
Sure, directors can transfer money out of the company and make it disappear. But Chinese police are not dumb either..
Gain $7 scam money, and loose $40 mil real money as well as the company. What will the owners choose?
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