GPRC provide30-40% of stock for manipulation ... not a victim !
2. The Defendants’ schemes regarding China Auto and Guanwei followed a similar pattern. The schemes began when the Kelley Group reached secret oral agreements with the management of China Auto and Guanwei that they would cover all of the companies’ costs of going public in the United States, plus costs associated with the companies’ securities remaining publicly traded for at least two years, in exchange for approximately 30 - 40% of the public companies’ stock. The Kelley Group then acquired controlling interests in the stock of two publicly-held U.S. “shell” companies, which were used as the vehicles to bring China Auto and Guanwei public. Next, and consistent with their secret agreement, the Kelley Group paid for expenses on behalf of China Auto and Guanwei, including outside auditors, lawyers, and stock promoters, in order to prepare the companies to go public. The Kelley Group then structured reverse mergers between China Auto, Guanwei, and the respective shell companies, such that they initially controlled nearly all of the companies’ shares that were available to be publicly traded – the “public float” – but hid that control by directing that the stock be distributed to myriad entities that the Kelley Group controlled in the U.S., Canada, and Hong Kong, and by failing to file the required SEC reports. At times after China Auto and Guanwei’s stock began publicly trading, the Kelley Group, acting in concert with Becker and other stock promoters,manipulated the trading of the stocks, artificially boosting the stock price and volume to help facilitate the listing of both companies on NASDAQ.
You are claiming that the pps of GPRC was artificially boosted! Are you a comedian? GPRC earned $1.15 per share the year before last. Even a very modest PE of 10 would've valued GPRC shares at $11.15. GPRC never traded anywhere near this very modest valuation. Considering that the NASDAQ has been rallying for 5 straight years one could've expected a pps well above $11.15. The FACT is that GPRC is grossly and irrationally UNDERVALUED and has been for years! To even claim that the share price is being artificially boosted is one of the stupidest comments I've ever read!
Look, you idiot. Those Chinese clearly didn't speak English, and they didn't know anything about stock frauds in the US and Canada. They simply bought the idea of reverse merger, which happens to be legal; and they thought those crooks from Canada were good people.
As a business deal, they signed on to cover the cost of listing in the US. It was a case of being deceived by some criminals from Canada and the US - what else was new???
Listing in the US is very costly from the start. They were sold by the idea of reverse merger, and they wanted to save some money in that process. There was nothing wrong from the Chinese side - they never heard of reverse merger before. So they bought into this "cheaper" way of getting listed in the US. And a lot of companies are still doing it today!!
This was all discussed on the board over a year ago after Sharesleuth came out with an article. It was pretty clear then that it was Kelly and crew that were the bad guys and not anyone from Guanwei. But what difference does it make anyway. This is all stuff from 5 years ago and was already known to anyone that read the sharesleuth article back in Dec 2012