News : small-cap-series

China Series

Regulation A+

May 26, 2015

On March 25, the Securities and Exchange Commission (the “Commission”) formally adopted final rules, which update and expand Regulation A, an exemption from the registration requirements mandated by the Securities Act of 1933 (the “Securities Act”). These newly adopted rules, which have been dubbed “Reg. A+, provide an exemption for small offerings of up to $50 million worth of securities in any one year period.

China Series

Small Capital Public Company Updates

July 17, 2012

The past year has seen a number of developments in the U.S. markets that will affect small-cap companies and their ability to access the capital markets. Depending upon your perspective, these developments can be viewed as either positive or negative. The most substantive of these changes are the JOBS Act (Jumpstart Our Business Startups Act ) and the seasoning rules that relate to the ability of companies that have become public through reverse mergers with public shells to up-list their securities to a listed exchange such as NYSE-Amex or a national market such as NASDAQ.

China Series

What to Do if Your Company Receives a Delisting Notice From NASDAQ or NYSE-AMEX

April 25, 2012

As our previous articles have discussed, as a result of a number of factors, including negative allegations from short sellers and suspicion from regulators, Chinese companies with stock that trades publicly in the U.S. have faced unprecedented challenges in the last 18 months. Among these challenges, for companies whose stock is traded on Nasdaq or listed on the NYSE-AMEX, is the potential for delisting from these premier markets.

China Series

What to Do if Your Auditor or Audit Committee Requests and Investigation

April 11, 2012

As discussed in previous articles, the past year has been largely negative for U.S. listed Chinese companies. As a result of numerous accounting scandals and allegations by short sellers, many U.S. listed Chinese companies have undertaken an independent investigation at the requests of either their independent auditor and/or the audit committee of the company’s board of directors.

China Series

What to Do if Your Auditor or Audit Commitee Requests an Investigation

April 11, 2012

As discussed in previous articles, the past year has been largely negative for U.S. listed Chinese companies. As a result of numerous accounting scandals and allegations by short sellers, many U.S. listed Chinese companies have undertaken an independent investigation at the requests of either their independent auditor and/or the audit committee of the company’s board of directors.

China Series

Raising Money Post 2011 – Options in the U.S. and other Markets

March 20, 2012

For Chinese companies that went public in the U.S. markets prior to 2011, particularly those that became public through an RTO, the ability to raise money in the U.S. capital markets has declined significantly since a number of high profile fraud allegations were made by various short sellers in the past two years. These allegations started a landslide of negative consequences for many Chinese companies listed in the U.S., including but not limited to, delisting of companies’ stock from markets such as Nasdaq and NYSE-AMEX, regulatory investigations and class action law suits.

China Series

“Going Dark” – There is a Right Way and a Wrong Way

March 08, 2012

In the previous article in this series we discussed the increased costs for Chinese companies to remain public in the U.S. For many Chinese companies who became public in the U.S. the costs outweigh the benefits and management has decided they no longer wish to be a public company. Some of these companies have the capital necessary to repurchase their stock from the public shareholders and “go private.”

China Series

Should Your Company Remain Public – Costs and Benefits

February 22, 2012

Between 2005 and 2010 dozens of Chinese companies chose to become publicly traded in the U.S. by engaging in a reverse merger (RTO). Unfortunately, since 2011 the market value of most Chinese stocks that are listed in the U.S. has declined while the costs of being a public company have increased.