Asia Cork ( AKRK) is broadening share ownership among the company's top executives and board members, which could help to facilitate a possible public offering.I had written
I also had suggested that investors may be intrigued that an 8-K filed on Dec. 24, revealed some board changes at the company. Specifically, the filing outlined the appointment of a new COO, CTO and three independent board members, as well as the establishment of charters related to the audit and governance committees. Those actions can often coincide with an up-isting move and/or financing transaction. Being that AKRK is below $3 per share, it would need to effect a reverse split to minimally qualify for the American Stock Exchange, a very common move these days by U.S.-listed Chinese companies. While the outstanding Ancora debt still exists, the due date for the promissory note has been extended for another year, which means that Asia Cork is no longer past due on this obligation. An offering, depending on Ancora's involvement, could ultimately address this issue and provide necessary capital for expansion goals. On the whole, these developments are positive because (1) They align management's incentives with the best interests of public shareholders. (2) They offer conjecture that Asia Cork may be preparing for an uplisting. (3) A short-term liquidity problem is taken off the table. Of course, the topic of dilution is now back on the table, which will depend on the use of the funds.