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CBK Digest, August 24, 2015

(Originally published via CBK’s email newsletter. To sign-up see box on right side of website.)

MARKET MOVES

Fuling Global Coming to the Nasdaq Soon
Watch for Fuling Global Inc.‘s filings as it prepares to debut on the Nasdaq, under the ticker “FORK.” Based in Wenling, Zhejiang Province, the company produces disposable plastic serviceware (cutlery). It is coming to the market via the Jumpstart Start-Up Act. Burnham Securities is serving as the underwriter. SEC FILING: F-1, July 28, 2015

Blank Check Company, E-compass Acquisition, Completes IPO
Blank check company, E-compass Acquisition Corp.. (Nasdaq: ECACU), completed its IPO on April 19, 2015. It 4,000,000 units, offered at $10 per units. It raised $40 million. Each unit consists of one ordinary share, par value $.0001 per share, and one right to receive one-tenth of one ordinary share upon consummation of an initial business combination. Cantor Fitzgerald & Co. acted as the sole underwriter for the initial public offering. The company is focused on e-commerce and consumer retail industry in China. Management and Directors: Richard Xu is CEO and Chairman. He was president of CIFCO International Group, a financial advisory firm focused on overseas investments in Chinese enterprises. He was based in New York. He has a Master’s in computer science from NYU. The CFO is Peiling (Amy) He. She served as CFO for Deyu Agriculture Corp. He served as an audit manager for Deloitte Touche Tohmatsu CPA Ltd. in China from for six years. Attorney and investment banker, Nicholas Clements serves as an independent director.

Dago Considers Trading Sub on “New Third Board” in China
Chongqing-based Dago New Energy Corp. (NYSE: DQ) is considering plans to trade on China’s New Third Board. The company is exploring the idea of listing its subsidiary Xinjiang Daqo New Energy Co., Ltd. on the National Equities Exchange and Quotations, an emerging over-the-counter market in China. Xinjiang Daqo operates the polysilicon production facilities of the company located in Shihezi, Xinjiang Uyghur Autonomous Region.

GOING PRIVATE NEWS

CMGE Goes Private
Hong Kong-based China Mobile Games and Entertainment Ltd. (formally: Nasdaq: CMGE) went private on Aug. 10, 2015 due to the management-backed “going private” merger. Shareholders of ADS shares received $22.00 per share. CMGE is a mobile game developer in China.

Country Style Cooking Receives “Going Private” Offer
Chongqing-based Country Style Cooking Restaurant Chain Co. Ltd. (NYSE: CCSC) announced on August 14, 2015, its board had received a management-backed “Going Private” merger offer. Ms. Hong Li, Co-Founder and Chairwoman of the board, Mr. Xingqiang Zhang, Co-Founder, CE) and Director of the company, and Sky Success Venture Holdings Ltd. proposed the offer for $5.23 per ADS. They intend to fund the transaction with a combination of debt and equity capital. The Board has formed a special committee comprised of independent and disinterested directors, including Messrs. Li-Lan Cheng, Winston Jin Li and Eric Haibing Wu. Mr. Li-Lan Cheng will serve as chairman.

Dangdang Retains Advisors
Beijing-based E-Commerce China Dangdang Inc. (NYSE: DANG) has announced that the board of directors of the company has retained Duff and Phelps as the financial advisor and Shearman & Sterling LLP as its legal counsel effective July 30, 2015. This is in connection with the ‘going private’ proposal that the company received and the company is in a state of evaluation of the said proposal and the retaining is in accordance with this. Dangdang is a business to consumer e-commerce company in China.

YY Appoints Advisors
The special committee Guangzhou-based YY Inc. (Nasdaq: YY) has appointed Citigroup Global Markets Inc. as its financial adviser and Fenwick & West LLP as its legal counsel effective August 3, 2015. This is in connection with a non-binding proposal that the company received and the retaining is in due connection to this proposal. The proposal comes from a consortium of the chairman of the board of directors and CEO of the company. YY is an interactive social platform using voice, text and video.

SHARE REPURCHASE PROGRAMS

Nam Tai Property Launches Share Repurchase
To build investor confidence Shenzhen-based Nam Tai Property Inc. (NYSE: NTP) launched a share repurchase program on August 3, 2015. The company intends to purchase 15 million of its shares priced at $0.01 per share at a purchase price of $5.50 per share. Nam Tai is a property development and management company in China.

Tarena Launches Share Repurchase
Beijing-based Tarena International, Inc. (Nasdaq: TEDU) launched a $20 million share repurchase program on Aug. 20, 2015. The program will run for 12 months. The company expects to fund repurchases made under this plan from its existing cash balance. Tarena International, Inc. is a provider of education services in China.

FINANCING

58.com Secures $400M Loan
Beijing-based 58.com Inc. (NYSE: WUBA) obtained a short-term loan of $400 million loan from a shareholder of the company effective August 3, 2015. The loan is interest bearing. The company intends to use the proceeds from the loan for general company needs and corporate uses. The company runs an online marketplace enabling local merchants to sell to consumers online.

Jinko Solar Secures Loan Agreement
Shanghai-based JinkoSolar Holding Co. Ltd. (NYSE: JKS) secures a loan from Export Import Bank of China dated August 3, 2015. The loan is valued at $62 million in addition. The loan would be used to cover fixed assets of the company and as a working capital. The loan will be used to enhance the company’s production facilities. Jinko Solar is a Chinese distributor of solar products.

DIVIDENDS

Highway Holdings Declares Dividend
Hong Kong-based Highway Holdings Ltd. (Nasdaq: HIHO) declared a cash dividend of $0.10 per share on the company’s common stock to be paid on Sept. 15, 2015, to shareholders of record on August 25, 2015. Highway Holdings produces parts and components for equipment manufactures.

Xinyuan Declares Dividend
Beijing-based Xinyuan Real Estate Co., Ltd. (NYSE: XIN) declared a dividend for the second quarter of 2015 of $0.05 per ADS, payable on Sept. 9, 2015 to shareholders of record as of August 24, 2015. Xinyuan is a real estate developer and property manager in China. Xinyuan was one of the first Chinese real estate developers to enter the U.S. market and over the past few years has been active in real estate development in New York.

COMPLIANCE

Ossen Regains Compliance
Shanghai-based Ossen Innovation Co. Ltd. (Nasdaq: OSN) has announced that it has regained compliance with NASDAQ capital market listing requirements effective July 31, 2015. The stipulation is that the closing bid price of a share for a listed company be US$ 1.00 per share. Previously the bid price of the ADs of the company fell below the stipulated price requirement and the company was not in tandem with the rule. But the company has recently found compliance with the rule with the increased price fixation. Ossen Innovation manufactures and sells steel materials.

TPI Issues Update Regarding Compliance Status
Chengdu-based Tianyin Pharmaceutical Inc. (NYSE Amex: TPI) received a notice of non-compliance in late July, from the NYSE, due to it trading below the listing standards. TPI is a Chinese pharmaceutical company that manufactures and sells pharmaceutical products.