RE:Re-establishing relations with major customersI have some comments on that press release
I will seriously doubt the statement of Loudon successfully taking control of subsidiaries in PRC given the timing of his travel to China and reports that no company representatives ever been informed of his visit to Jiangsu subsidiary's office. I will also doubt that the company he hired to manage subsidiaries in China took over company's operations and domestic distribution for a simple fact that it is legally impossible to instate external management in shorter than 3 month in China and it is only possible under a long list of conditions. This would’ve been a very exotic legal case in China that would’ve take both court and regulators time to process. As far as I know, the factory continues operation, domestic market distribution is going on, and they haven’t ever heard of anybody trying to reach company’s operations people.
I tried to contact FTI China yesterday. The FTI agent, who was named to be in charge of handling of Hanfeng, declined my inquiry citing that he is hired by a private individual and not by Hanfeng as company and that Canadian securities laws have no power in PRC. The guy was very reluctant to talk. Other agents that I reached didn’t speak English on a level needed to comprehend what I was trying to inquire.
I can speculate that what Loudon is trying to do is to exaggerate the level of influence he holds over company assets in order to secure appointment of his board during next AGM; this also comes along his previous line. He is implicitly trying to state: “either you sell to my buyer (which was some random HK or Cyprus registered fund ran by his ex-colleague) or you will have nothing if you go with Yu because the company will be split in two.”
I'm no longer a shareholder of HF since it went below $1.5, but I'm looking forward to buy it again if it will ever bounce back.