GREY:PUDA - Post Discussion
Post by
coldheat on Mar 07, 2014 1:21am
New Amended Complaint filed
This is part of the motions that may be decided on the 10th at a meeting. In it I found the major change they made and it is what they believe to be "The Smoking Gun" revealed in a evidence filing that was kept confidential from Macquarie, the underwriter. (Item 53... In connection with the offering, Macquarie hired Kroll Inc. to perform due diligence with respect to Puda. : On December 2, 2010, Kroll sent to Macquarie a 40 page investigative report showing that based upon SAIC records, Puda did not (through it's wholly owned subsidiary "Putai" own 90% of Shanxi Coal. In fact, Kroll informed Macquarie that SAIC records revealed that Putai did not have any ownership in Shanxi Coal. Six days before the December offering. Kroll reported that Shanxi Coals owners were: Ming Zhao (50%) Citic (49%) Wei Zhang (1%)
: We were tipped to this by some Chinese reporting early on after the halt...but it was not quite this clear. My take....
From a factual standpoint, this information is likely 100% correct! However, since Puda Inc's ownership of Shanxi Coal was not ever direct, Putai's indirect stock ownership was not something that would have been filed with the SAIC as it was owned by a US entity. It's ownership was by agreement only. Which is the weak link in these RM's. and most any US investment in China.
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