Chengxuan purchased 110,000 of the Company's American Depositary Shares
Chengxuan, a major shareholder which is owned by Mr. Xiaodong Wu, Chairman and Chief Executive Officer of the Company, informed the Company that Chengxuan purchased 110,000 of the Company's American Depositary Shares ("ADSs") in the open market on June 13, 2011 at an average price of US$7.33 per ADS. Chengxuan also indicated the intention to purchase additional ADSs in the open market in the future in compliance with the Company's insider
If CEO of CMED is the beneficial owner and is also an insider, can someone tell me why Form 4 is not filed with the SEC when shares are purchased through another company that he owns? I am most concern with making sure that the sales are filed using SEC form 4 as required by an insider.
So how do we get transparency into Mr. Wu's buying and selling? The lower officers must file a Form 4 with SEC when they buy or sell, but we get the "good news" only from a CMED press release about Mr. Wu, the CEO. And,, the stock goes up. I wonder if they also have a release when he sells some. And,,,,what is the relationship with Chengxuan and Keywise Capital? I dont see Chengxuan on any list of owners of more than 5% stock, but they own 22%. Who sells the stock, when Mr. Wu buys? Could he just be transferring money from one pocket to another? where is the transparency? i guess just a coincidence that Mr. Wu has now chosen to buy and sell through Chengxuan, where he used to buy directly. I sure would like some help from someone who knows their way around disclosure rules.
Wouldn't that be an interesting final. Mr. Wu taking it private like he did with the HIFU business and then closing it and running off with the money. HIFU was the glamorous technology for the future of CMED just two years before he took it private and SFDA did not renew the license for it. We knew the revenue for that business was all fiction. Looks to me, that Mr. Wu was watching this board suggesting that he was not participating, and made a move to manipulate the stock, yet again. And, it worked (for now)