China
Is the China Comeback Commencing?
By David Feldman at 13 November, 2011, 12:17 pm
Here are the latest mixed signals from the headlines: – US officials charge Longtop Financial with failing to file accurate financial reports – Lashou to complete IPO on Monday and raise $80 million – Harbin Electric goes private for $800 million – NY Court throws out securities fraud claims against China North East Petroleum – VC [...]
Read More >>Temperature Heats Up in PCAOB-China Talks
By David Feldman at 1 November, 2011, 11:12 am
The Reverse Merger Wire reports that Public Company Accounting Oversight Board (PCAOB) Chair James Doty is growing a little impatient with Chinese securities regulators over the issue of inspections of Chinese accounting firms that are auditing US public companies. There was an apparently positive meeting between the PCAOB and Chinese officials in July in Beijing. But [...]
Read More >>Tough Quarter for RM as SEC Roundtable Convenes
By David Feldman at 17 October, 2011, 10:08 am
I am aboard Amtrak’s fabulous Acela train on the way to participate in a panel at today’s SEC Roundtable on microcap securities in DC. Follow the webcast live starting at 1pm Eastern time at www.sec.gov. I hope to talk about reverse mergers today. About our three year effort to reverse the “evergreen” requirement to remain [...]
Read More >>Israel Heating Up in PIPEs
By David Feldman at 12 October, 2011, 2:34 pm
The October 4 PIPEs Report lets us know that tiny Israel is becoming more and more popular for PIPE investors that have turned their attention away from China. The PR reports that at least 12 companies from Israel raised $147.45 million from PIPEs this year. One hedge fund investor states that he feels Israeli companies [...]
Read More >>Highlights from M&A Conference
By David Feldman at 11 October, 2011, 5:37 pm
I spent some time today at the 2011 International M&A Summit put together by the M&A Advisor. Here are some tidbits about the current M&A environment that came out of the panels: 1. There was a dramatic slowdown in deal activity in the last 30-60 days due to market conditions. 2. Corporations with cash are still [...]
Read More >>My SEC-Submitted Comment to Nasdaq’s “Seasoning” Proposal
By David Feldman at 7 September, 2011, 7:58 am
In addition to the comment I provided to the NYSE Amex’s proposal to require reverse merged companies to “season” by trading over-the-counter for a period before applying to uplist (with an exception for a large public offering), I also submitted the comment below with regard to Nasdaq’s similar proposal, which does not even have an [...]
Read More >>China: Boon for Litigators in 2011
By David Feldman at 26 August, 2011, 4:08 pm
The new Reverse Merger Report noted that there are three times as many class action lawsuits against Chinese reverse merger companies as there were a year ago. In fact, the RMR says that these suits represented more than 25% of all class action suits brought during the first six months of the year. So China has [...]
Read More >>Second Quarter Numbers Hit by China
By David Feldman at 17 July, 2011, 1:50 pm
Just 37 reverse mergers were completed in the second quarter of 2011, according to the Reverse Merger Report. That’s down over 50% from the second quarter of last year. Still way more than IPOs, but down is down. Much of this, of course has to do with China. Only three Chinese APOs were completed in [...]
Read More >>Balancing China’s Interests with Need for Inspections
By David Feldman at 11 July, 2011, 5:20 pm
The current China hot button appears to be a series of meetings between representatives of the Securities and Exchange Commission, the Public Company Accounting Oversight Board, and their counterparts in China. The hope is to convince the PRC government to allow the US regulators to inspect the audits and work papers generated by Chinese auditing [...]
Read More >>Chairman Schapiro: Please Don’t Decimate Small Company Finance
By David Feldman at 3 July, 2011, 9:56 am
Late last month SEC Chairman Mary Schapiro announced at a Wall Street Journal forum that the Commission is looking at a variety of options to deal with concerns about reverse mergers. According to the Journal, she said the SEC is “weighing ‘a menu of ideas’ but they aren’t ‘ready for prime time, yet.’” She suggested [...]
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