I called Kevin Theiss at Grayling....let's see if he returns my call..Management of SDTH is displaying a disregard for its shareholders by allowing FUD surrounding recent developments...all they have to do is communicate... I am sure the shorts (recent increase) got the word...
ShengdaTech filed the S-3 shelf to provide flexibility for possible financing in the future. With the shelf registration, the Company has the option of using several alternative instruments should the need arise or market conditions be favorable to quickly raise capital. It should be noted that the current convertible notes have a put option whereby investors have the right to put the notes back to the Company if they choose to in June 2011. In order to ensure the Company has enough financing flexibility to fulfill its growth plan, ShengdaTech filed this S-3 shelf filing, like many other companies, so it is prepared.
----------------------------- Kevin Theiss Account Director Grayling USA 825 Third Avenue, 18th Floor New York, New York 10022
Tel +1 (646) 284-9400 Direct +1 (646) 284-9409 Fax +1 (646) 284-9494 E-mail firstname.lastname@example.org