Thursday, October 04, 2007
China Education Alliance (CEDA) 1-for-3 reverse split
It's worth noting that in the 10-K, Xiqun Yu owned 30,190,411 shares (page 26). In the proxy, he owns 38,050,000 shares. Yet in between, I don't see any forms filed with the SEC about acquiring more shares.
Getting back to the reverse split...
"We believe the reverse stock split will place our company in a position to apply for listing on a market or exchange if we can meet the applicable listing requirements. Our goal is to work towards meeting listing standards," said Mr. Yu, Chairman and CEO of China Education Alliance, Inc.I don't know if this is what caused the stock to go up so much lately. If that was the case, it should have happened long before it did. The jump and very heavy volume started on Sept 26. The proxy was filed on Sept 9.
As a result of the amendment to the certificate of incorporation, the board of directors has the power to set the rights, preferences, privileges and limitations with respect to one or more series of preferred stock, and the directors approved a series of preferred stock, designated the Series A Convertible Preferred Stock. As a result, notes in the principal amount of $3,400,000 that were issued in the May 2007 private placement were automatically converted into shares of series A preferred stock and warrants as previously disclosed.Ok, fine.
I continue to hold the stock.
UPDATE minutes later:
I just noticed that the post about Fission Energy (the Strathmore Minerals spinoff) seems to have disappeared. They had a trading halt at 3:08 PM on Wed pending news. The Blogger ate my post! [update: no, it was just an update and it's still there. Homer "D'oh!"s.]