finesand
6 years ago
Re: Ownership Reorg – A Clean Restart
Fixed and aligned new owner name to Liao Huiping (Mandarin translation, surname Liao first). Few details were edited and added.
All we can say is: Go Liao Huiping, make BSPM functioning again
- CEO Wang’s Debt payed off, Company’s assets freed, no liens nor litigation
- Liao Huiping takes controlling stake into Company from Mr Wang
- Liao Huiping seeks to remove Mr Wang from BOD Chairman position
- Liao Huiping seeks to reshape overall BOD, essentially taking full control
- Liao Huiping seeks to implement new business plans
https://finesand.wordpress.com/2018/07/02/biostar-pharmaceuticals-bspms-ownership-reorg-a-clean-restart/
+++
On 2018-07-05 we are 17 calendar days or 12 business days after the 60 day deadline on 2018-06-18, hence we may deduce that a plan has been accepted by NASDAQ.
...
BOD Liao Huiping’s ownership takeover on 2017-06-04, cleaning CEO Wang’s debt and therefor freeing all of Company’s’ assets before the private transaction, signals a good standing with NASDAQ and SEC. Consequently we shall expect the 10-K/Q filings rather sooner than later.
https://finesand.wordpress.com/2018/06/26/biostar-pharmaceuticalss-bspm-pivot-value-play/
finesand
6 years ago
Ownership Reorg – A Clean Restart
https://finesand.wordpress.com/2018/07/02/biostar-pharmaceuticals-bspms-ownership-reorg-a-clean-restart/
When you think time gets boring until company files the late 10-K, think again. Company’s BOD and influential successful businesswoman Waiping Liu, also known as Huiping Liu or Huiping Liao under Chinese pronunciation, bought a 16.2% controlling stake of the company. She filed her Schedule 13D on 2018-07-02 at 17:00:22. In summary
- CEO Wang’s Debt payed off, Company’s assets freed, no liens nor litigation
- Huiping Liu takes controlling stake into Company from Mr Wang
- Huiping Liu seeks to remove Mr Wang from BOD Chairman position
- Huiping Liu seeks to reshape overall BOD, essentially taking full control
- Huiping Liu seeks to implement new business plans
finesand
6 years ago
BSPM’s Delinquency Status
Read my friend's assessment about BSPM's delinquency status https://finesand.wordpress.com/biostar-pharmaceuticals-bspm-delinquency/
Excerpt here:
+++
Now I called NASDAQ today on 2018-06-28 12pm EST at +1 301 978 8008 and they told me they could not give me any specific information regarding any company’s filing status and I would need to have to wait until news are being presented. Persistent as I am, I asked her about their general procedure in these cases:
- What happens if NASDAQ accepts the plan after the 60 days (here after 6/18)?
- What happens if NASDAQ rejects the plan after the 60 days (here after 6/18)?
Here answer (by memory):
- If we accept the plan, Company has not to PR anything. They only need to PR and file the deficiency letter. We also do not PR or file anything in this case.
- If we deny the plan, in general we will send a delisting notice out within 5 days.
....
Today is the 8th business day or 10th calendar day after the 60 day deadline on 6/18.
One may want to adjust their risk / reward assessment the longer we get away from 6/18. IMHO, the delisting risk is already gone by now, at least this is my opinion.
+++
finesand
7 years ago
Interesting Findings re Shanxi Weinan Huaren Pharmaceuticals
Shanxi Weinan Huaren Pharmaceuticals has been claimed to be bought by Guang Dong Jian Quan in January 2017, see http://www.healthr.com/company/50FSo/
Now that is quite interesting (o8>
Weinan was bought in 2011 for roughly 61M RMB or $9.6M
and is now claimed to have asset value of around
"Shaanxi Weinan Huaren Pharmaceutical Co., Ltd. covers an area of 50 acres, a registered capital of 80 million yuan"
It would explain how company was able to renovate Shanxi Aoxing, get the GMP license back in Dec'17 and already kicked of production and sales.
Since the letter was very unlikely to happen while certain assets were claimed by creditors!
Conclusion based on previously posted proof that sales of new production occurs: They are clean by now.
So .. again, waiting for the audited 10-K.
GL
PS: Not a pump, but speculation based on this DD
finesand
7 years ago
Updated spreadsheet in Intro, etc
It is t is the bigger parent Shaanxi Aoxing
not the smaller Shaanxi Weinan regaining its GMP license.
Shaanxi Weinan actually lost its GMP license in 2017.
Let's see what Mr CEO Wang has achieved within the last months, actually two quarters. As posted earlier here, production has been kicked off and we have found evidence that new production is already being sold.
Assuming he does not let go his stock from Nasdaq and is simply just late again with financial filings like in 2017, we shall soon learn about the details within the next 14 days maximum.
In case production and sales is being ramped up properly again, we should expect a price correction towards the $6/sh refundable deposit value at least.
Highly volatile stock .. otherwise.
Historical Evaluation on using 12month MA and 10-K data + Projections + Deposit Details
Annual YoY Fundamentals using 12 month MA for lower stock price
finesand
7 years ago
tick tock: 6/18 + 15 days?
Last year BSPM was also delinquent on two financial reports, but 'just' quarterlies - now one audited annual.
Last year they had time until around end of October and started filing their 10-Q 11/15 .. so 15 days extra late (o8>
Only thereafter they showed 'new' development, which of course already happened.
Assuming Nasdaq will be just patient and nice again, maybe a similar 'slide until filed' play will continue.
Let's see how they play it this year ..
One thing for sure, after 10-K and 1Q18 has been filed, watch out for the cash position, refundable deposits and OS of course.
the Company is required within 60 calendar days (or before June 18, 2018) to submit a plan of compliance with its continued listing deficiencies. If the Company's "plan is approved by the Nasdaq staff, the Company may be eligible for a listing exception of up to 180 calendar days (or until October 15, 2018) to regain compliance
finesand
7 years ago
Status update?
Company is now late on its 1Q18 10-Q as well, NT 10-Q filed.
We expect company needs to file the audited 4Q17 10-K before the 1Q18 10-Q first, so that may take a little while since they changed their auditor recently.
They have about 30 more days of the 60 days grace perdiod, last time they exceeded the initial 60 days and all was OK.
While they are a late filer as of now (10-K), they cannot issue new shares. We are unsure whether they can release material positive news until they are current. This is not a written rule, but probably not seen positive.
.. just the usual waiting
finesand
7 years ago
Nice Pre-Official Reaction Today
Meaning stock moved either on a low float P&D or reflecting our DD regarding the production & sales artifacts.
We believe 8dema around $2.40 will hold on a slide until official news, which can be hard to time.
If this was just a premature low-float P&D it surely will come back, maybe even to $2.20'ish - if holders don't believe the DD or are still scared about the late 10-K.
We are not scared, however - we surely also traded the top above $3.
01 hinted to the January '18 trade before the GMP license PR and even thereafter, coming all the way back down before rising again. Surely today also acted on lower volume.
No real crystal-ball here, but we believe when company releases the production & sales news it will properly recover back to its refundable asset value at least. This especially if 1Q18 or 10-K (whichever comes first - hint) demonstrates stability.
Notice previous post regarding growth and revenue numbers while producing.
Good luck, this stock is heavily volatile.
finesand
7 years ago
Research Result of Last Days
(images on the bottom of post)
Chinese FDA for BSPM’s GMP and Company License
GMP License: SN20170253, Valid 2017-11-10 - 2022-11-09
Company License: Valid 2017-11-10 - 2020-12-31
Chinese Gov Website
Company has at least four licensed OTC products to sell.
Company PR'ed GMP renewal late in February, funny, isn't it?
They PR everything late, like now the 10-K. We got used to it.
+++
Chat with one pharmacy in Shaanxi Province about availability and pricing of BSPM’s Liver/Hepatitis Product.
Result: Newly produced are available to purchase with expiration data 2019.
Note that two other pharmacies around Shanghai and Beijing do not have BSPM’s products available yet.
Products on sale in Pharmacy in Shaanxi Province
Chat with said Pharmacy about pricing, expiration date and whether it is newly produced (PDF file)
+++
Notes from our debate:
- Demonstrating company is doing their job, no BK, licensed, producing and selling already.
- Chinese speakers doing their fair DD know this already
- Stock had an extra dip from $3'ish to $2 thanks to the late 10-K
- Refundable deposits $26M, OS 3M value at > $8/sh (see on board's Intro)
- Margins are >= 50%
- Company very often does file 10-K/Q late
- GMP license alone and producing again has proper value above $4/sh alone
Good luck & thanks for the late 10-K dip.
+++
GMP License: SN20170253, Valid 2017-11-10 - 2022-11-09
Company License: Valid 2017-11-10 - 2020-12-31
finesand
7 years ago
We started buying slowly again, neatly below 200dma
Our little DD update hasn't shown anything new here yet,
but that the Chinese FDA website has indeed listed their
renewed GMP (manufacturer) license since November 2017
and their GSP (supply) license.
We are looking into updates on their relaunched production and sales. Will update here for any news, of course.
Company changed auditor a while ago again, therefor the 10-K has been delayed. I wanted to wait buying until its SEC filed, but around $2 we couldn't resist. The low volume slide may not last forever.
Let's see how it this goes.
finesand
7 years ago
NAV (Equity) Value is
- $36.88M or $13.69/sh equity, including
- $26.58M or $10.07/sh deposit value, having $16.03M or $6.07/sh refundable
Stock is traded far below these liquid assets with a discount > 45% now and
stock is traded far below equity with a discount > 75% now.
No company likes to raise money via an offering below this NAV value, especially not the hard liquid asset value.
It is our assumption that - if needed for production - will either take off some money from the refundable deposits or will receive a proper loan with less than 10% interest rate.
As mentioned earlier, the closing of the acquisition of the Health Product Manufacturer, which is about to finalize, may also boost the company's balance sheet bringing these now non-refundable deposits back to work.
Further more, company has received the GMP certification and will start production in 2Q18.
finesand
7 years ago
a little bit more color on the deposits
A little elaboration to above numbers, I walked through last days. I talked to my accountant and she was laughing, stating that such investments of course reduces income and therefor tax. So company here makes deposits in advance for future investments. Some are almost final and hence not earmarked refundable some are quite fuzzy and marked refundable. I saw that this status has changed with some deposits accumulation over time, see in above table. Therefor company did a great job accumulating profits for future investments (acquisitions). The mentioned acquisition to be finalized soon, no more earmarked refundable, has the ability to boost company's revenue. It has to be noted that all this cash accumulation happened with own revenue and not like XGTI's dilution + RS :) Hence this is a very bullish attribute of this company and the deposits are real, accounts being audited in 10-K.
, 01
finesand
7 years ago
Updated Historical Revenue Evaluation
Previous posts:
- Shaanxi Aoxing Pharmaceutical Impact
- Financials For Production Relaunch / Sales Platform
- Consolidation, Low Volume Slide: Rise
After taking the moderator job here, I have updated some sheets with 01 and dropped them in the intro of this board.
- Using 12 month MA for stock price and hence MCAP
- Showing the development of those Deposits and usage, they are real
One probable additional surprise could be the closing of the acquisition of the Health Product Manufacturer, which is about to finalize.
Yes, we do think this company has a lot of potential growth now, especially after restarting production and sales in 2Q18. Hence the intense DD withing the last days. If DD is completed, my posts here will be reduced of course.
We have traded the first rise while waiting for the GMP Certificate, after it was granted we bought more - a lot.
Then slowly sliced it out on the way down.
After Spring Festival was over, we started buying the dips again and will continue to do so over the next sessions.
Medium term price target is above $5, probably $8+.
If production and sales are showing good results, much more is possible here of course.
finesand
7 years ago
Relevant for 4Q17 and 2018 Revenue?
2016-10-11 Launch a New Product Aimed at Treating Effects of Rhinitis and Sinusitis
$7.5M within 2 years starting in 2017?
So far, none has been recognized in 2017 of this product.
Potential to give a positive surprise in either quarter 4Q17 - 2Q18 inclusive.
The Chairman continued: "In the past several months, we have been preparing various steps necessary for the launch of this new product. Though we do not anticipate any significant sales revenue in 2016, we expect to sell approximately 400,000 units within the next 2 years, which is expected to yield approximately RMB50 million (or US$7.5 million)."
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