Migao......part two of articleHope this pastes.
D F C
TORONTO, June 9 (Reuters) - China's Migao Corp (MGO.TO) said on Thursday it would buy back up to 5 percent of its stock to help reassure investors suspicious about a contract that the Canadian-listed fertilizer company said it had signed with an unknown Russian supplier.
Shares of Migao have tumbled over the last week due to investor misgivings about the contract and exacerbated concerns about North American-listed Chinese companies.
Investors are particularly sensitive to any suggestion of impropriety involving such companies since fraud allegations surfaced last week against Sino-Forest (TRE.TO), a Toronto-listed company that a short-seller says exaggerated its Chinese forest holdings. [ID:nN03131872] [ID:nN08210464]
Aware of the market's heightened sensitivities, Migao sought to shore up confidence in a statement on Thursday, even as it announced a 14 percent drop in quarterly profit.
"I acknowledge the confusion and uncertainty caused due to the potash supply agreement announced in March," said Chief Executive Liu Guocai. "To show my confidence in the agreement, I have pledged my entire shareholdings of Migao against the possibility of default by our supplier."
Guocai owns a third of the company's outstanding shares, his stake based on Wednesday's closing price is worth roughly C$88 million