The trials and tribulations of the Chinese Microcap RTO arena have been widely publicized by CNBC, financial journalists, and short sellers. Most of the scrutiny has been well founded. In a nutshell, over the last few years many Chinese companies went public mostly through means of a reverse merger/reverse takeover (RTO) because it was the easiest, cheapest, and fastest way to get funding from US investors. A couple years ago the first high profile Chinese microcap announced accounting irregularities which broke the flood gates wide open. Soon after, investigative journalists have uncovered irregularities on several more Chinese microcaps, and ever since the whole space has really been deemed guilty until proven innocent. GeoInvesting was one of the first firms to put boots on the ground in China to do due diligence into some of these companies. Dan David is the VP and Co-Founder of GeoInvesting who also heads up the company’s China RTO research division. (Click the Play Arrow to listen to the full interview) Read More …
-
MicroCapClub Interview with China RTO Researcher Dan David Co-Founder of GeoInvesting
Posted May 11, 2012 By Ian Cassel in Blog, Broadcasts, Interviews With | 1 Comment
-
Victor Shih and Carl Walter on Banking China-style
Posted August 24, 2011 By Ian Cassel in Blog With | No Comments -
Chinese Micro Cap RTOs: Yelling Fire in a Crowded Room
Posted August 17, 2011 By Ian Cassel in Blog With | 1 Comment
The trials and tribulations of Chinese Micro Cap RTO’s have been widely publicized by CNBC, short sellers, and every other financial publication. Most of the scrutiny has been well founded. In a nutshell, a bunch of Chinese companies (fraudulent and real) went public through means of a reverse merger/reverse takeover (RTO) because it was the easiest, cheapest, and fastest means to an end ie: seeking capital from the US. Reverse mergers as a means of going public has been around for a few decades, and many well known companies have gone public via reverse RTO. In recent months, the RTO market has been decimated due to the wide spread panic surrounding multiple fraudulent China RTO’s. In Q2 2011, the number of reverse mergers completed was down by more than 50% from Q2 2010, and in real terms an amount not seen since 2003. Read More …