On Tuesday, March 19, 2013, Yongye received a written request from NASDAQ for additional information relating to the Company's delay in filing the Form 10-K, the collection of accounts receivable as of year-end 2012, the current state of the Company's auditors' audit of the financial statements to be included in the Company's Form 10-K for the year ended December 31, 2012, and the status of the Company's proposed "going private" transaction. The Company plans to provide the information requested by NASDAQ as promptly as practicable in an effort to satisfy NASDAQ's concerns so that it may permit the resumption of trading of the Company's common stock.
Trading will remain halted until Yongye International, Inc. has fully satisfied NASDAQ's request for additional information. Once such information and explanations are provided to NASDAQ, NASDAQ may request further information.
For your information, the aggressive and hostile halt of NASDAQ was the consequence of a desperate Richard X Roe who had sent to the authorities his "research" and video "proves" and NASDAQ is now obliged to verify the accusations of the short sellers.
It could be that NASDAQ wants YONG to say what the EPS would actually have been if they hadn't fudged the AR numbers AND hadn't pre-bought $23M (if I recall) of materials. You know, pre-buying materials is an old trick to lower your profit by increasing your costs. A good auditor will be alert for this, and was in this case.
My 2 cents.......the Nasdaq wants to do away with these problem Chinese company's. They want the special committee to approve the buyout price and this way, if it is a fraud, at least everyone is paid out. This is the best case scenario for the Nasdaq
I'm wondering whether YONG is intentionally not providing something because they don't want the stock to trade until a deal is done. Possibly worried that after getting the 10-K filed with a clean KPMG opinion maybe the stock would trade up to $6 and make the buyout offer look less sweet? That sounds crazy even to me but I'm nothing really surprises me anymore so who knows.
Sounds crazy to me. Besides, after the executive board voted in favor of the buyout, they must send out Proxy votes to approve the terms. There is no upside for the executives to screw around.
What we know so far are all kosher (Buyout finance still intact, 10K signed off, A/R addressed). Wonder if NASDAQ want KPMG to physically go to the Chinese Bank and check out the status of the loan etc. As several posters had pointed out, NASDAQ had eggs on their face when auditors (not the big 4) simply rubber stamped what company executives told them with forged documents.
I suspect the halt will continue until the Special Committee accepts a buyout offer. NASDAQ may think the buyout is a scam to keep the stock trading; other Chinese companies have certainly been guilty of that before.