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Tibet Pharmaceuticals, Inc. Message Board

  • eoim2012 eoim2012 May 17, 2012 10:40 AM Flag

    The Only Hope is if The IPO Money is Still in USA

    There is no single doubt in my mind that Mr. YU Hong is a Thief and a Fraud. The bank debt he owned is legit. He lied to The USA IPO underwriters. He lied to Mr. Guo Taylor the former CEO and to all the directors. Mr YU had a very bad plan to steal the money. I dont think he was able to execute his fraudulent plans with the IPO cash successfully due to the controls put in place by the the IPO Lead Underwritters Mr. Mac Downs and Mr. Hayden Zou.

    The IPO money was placed in control of the 3 indepnedent directors & former CEO Mr. Guo Taylor and the money was invested in interest yielding investments in USA pending transfer to the USA. There is no evidence that this transfer ever occurred.

    Since no acqusition or major capital expenditure was approved by the independent directors, there is no reason to believe that YU actually got control of the money. So it is highly likely the cash never got transferred to China.

    This would be the best scenario for all shareholders. If IPO cash is still in USA, then shareholders will get something back. It may not be the $3 offered by the thief Mr YU; but something might be returned back.

    If YU got control of the money, how come he failed to payoff the paltry 28 million yen debt owned the bank and risk everything. It is clear that YU had bad intentions from the start of this IPO. However, the only hope right now is if the controls put in place by Mac Downs and Hayden Zou alogside the independent directors worked. If the control worked, then Mr YU did not get control of the IPO proceeds and there is hope. If it failed and they mistakenly wired the money to YU, then we are all wiped out and must go after YU and cronies.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • The money is gone and stolen. Good luck trying to track it down.

    • "The existing shareholders and not the original IPO investors would get back the proceeds of any offer the board approved."

      That may be just wishful thinking on your part. Even the former investors who got sucked in by Yu's non-binding offer will have their hand out.

      Given the purported size of your current holdings of TBET, I can certainly understand your need for any palliatives you can grasp at.

    • The existing shareholders and not the original IPO investors would get back the proceeds of any offer the board approved. The company's transfer agent keeps records of the list of existing shareholders at all time. So these folks are the ones that would receive any payment if any.

    • But, is Rosen the answer to file suit to ensure the money doesn't disappear?

      • 1 Reply to cougarhsv
      • Forget about those hungry lawyers ar Rosen. They are waiting on the auditors to feed them with the evidence and they are basically doing nothing.

        If you want to seriously pursue a legal case assuming YU stole the money, the best bet is to launch a lawsuit in China against YU, Sabrina, GUO and all the directors. In addition to a very low legal cost in China, the sentencing would be harsher to up to EXECUTION if found guilty. Contrary to many opinions out there, Chinese legal system do work. I have seen billionanires sentenced to death in China & executed.

    • I heard that McCarthy Downs and Hayden Zou, being Anderson & Strudwick’s senior and experienced bankers, put in place some good measures at the time of IPO to protect American investors’ interest. To ensure that the money raised at the IPO would be used properly,

      1. They hired Mr. Taylor Guo, a U.S. educated Chinese business executive, as TBET’s new CEO and a board director, giving him substantially all the control of the IPO money;

      2. They hand picked 3 Independent Directors who would not easily go in cahoots with Mr. Yu;

      3. They forced Mr. Yu to give the new CEO Taylor Guo 4,484,500 shares (38%) of voting rights, leaving Mr. Yu with only 3,280,000 shares (27.8%) of voting rights, so that they not only controlled the majority of the Board member (Taylor + 3 independents vs. Yu and his CFO Sabrina), but also in the majority of share votes (Taylor’s 38% vs. Yu’s 27.8%;

      4. They acquired the right for themselves, as Anderson’s representative, to participate in all of TBET’s board meetings in the foreseeable future

      So if these measures put in place was followed by the directors after the resignation of Guo as director in January 2012, then the IPO cash would likely be in USA and not China.

      • 1 Reply to eoim2012
      • "I heard that McCarthy Downs and Hayden Zou, being Anderson & Strudwick’s senior and experienced bankers, put in place some good measures at the time of IPO to protect American investors’ interest. To ensure that the money raised at the IPO would be used properly,

        That is good if true. Is the above written down someplace that you could give us a link to or is that a hearsay info?

 
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