If SCOK was a legitimate company why would they hire an auditor like HHC LLP? Heres what we know about HHC. Their managing partner/co-founder Eric H. Huang used to be a senior auditor at Sherb & Co. In November 2013, regulators barred Sherb and 4 of its employees from auditing public companies, saying they failed to audit properly three Chinese companies traded in the U.S. Despite working as senior auditor for Sherb, Huang's bio on the HHC website does not mention he worked for the company. The other partner of HHC, Irene Cai, also worked as an auditor at Sherb. Her bio also fails to mention her employment at Sherb.
Both New York and Florida business addresses appear to be residential buildings.The New York business address listed for HHC is 110-20 71st Avenue, Suit 633, which appears to be a residential apartment building. Their Florida address 6724 Columbia Avenue, Lake Worth, FL, 33467, which is a residential house.
If SCOK wanted to show it was a trustworthy company, they would hire a real auditor.
additional dilution would be separate from the debt exercised at $1.58..the restructuring agreement is confusing but I read it that bondholders can exercise more of their debt (2018 bond) beginning in April..the exercise price on this would be an average of stock price during the previous 20 days. So there could be incentive for bondholders to do this..but they might not want equity in company and would rather keep bond. If they do elect to turn debt to equity, there would be more dilution that could hurt stock price.
The company did emerge from bankruptcy and initial dilution wasnt bad but there is potential for additional dilution if 2018 bondholders convert more debt to equity..This could lead to more dilution and hurt share values. Theres no guarantee bondholders will elect to do this but it could happen and current shareholders will be diluted. The restructuring agreement has more details about this.
shareholders will hold onto stocks as part of restructuring but there could be more dilution down the road if bondholders convert more of their debt to equity (read the press release for restructuring details..keep in mind that even though they are out of bankruptcy they still have lots of chinese bank debt..its risky but might be worth the gamble..im long but bought most of shares around $.10.