Yangtze River Development Ltd (OTCMKTS:YERR) is taking steps to uplist from the OTCBB market by becoming a fully reporting company. The stock has been rising 3.81% on the announcement and continues to see above average volume.
YERR was formerly known as Kirin International Holdings (KIRI) which had massive gains in 2015 surging from $0.31 to $7.20, a gain of 21,000%! The company boasts a large market cap for an OTC penny stock and current valuation is $976 million. Its current share price is $5.45 and has climbed over 25% since the beginning of the month.
YERR has been in the process of seeking financing through raising series to fund their major project through various avenues included but not limited to a partnership with the project, selling a mixture of debt and equity, or other areas. YERR filed an S1 registration with the SEC for up to $50 million and a 15%. This shows the company is series about raising financing and to fund the development of the logistics center in China. YERR has stated that the offering will be done depending on market conditions and an acceptable pricing terms. However, given this information, investors should expect a large number of shares to be issued or at least some dilution in order to raise such significant amount of funds.
The company has been strategically and quietly attempting to satisfy requirements to uplist from the OTC to a much larger exchange, the New York Stock Exchange which will likely bring on greater liquidity and ability to raise financing through institutional investors. YERR has recently announced that it has implemented proper oversight mechanisms by forming a Board of Directors with 11 directors whom are mostly independent from the company. Directors consist of backgrounds including logistics, real estate development, accounting, and capital markets.
The board of directors has also approved a Code of Conduct and established six committies including Audit, Compensation, Nomination, Governance and Human Resources, Board Oversight, and Social Media. In addition, it has adopted an insider trading policy to be compliant with regulations. As of January, the company has become a fully reporting company. It will come to no surprise the YERR will likely be uplisting to the New York Stock Exchange sooner rather then later given these recent developments.
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YERR is currently trading at a $976 million market valuation. It has taken all of the necessary steps to become a fully reporting company under the SEC, establishing a board of directors (and independent), developing and establishing policies and committees, and meeting capital requirements. Make no doubt that YERR has all intentions of uplisting to the NYSE. This is great news for investors and shareholders many institutional investors have restrictions when it comes to investing in stocks on the OTC.
We will be updating on YERR when more details emerge so make sure you are subscribed to Microcapspot so you know what’s going on with YERR.
Disclosure: we hold no position in YERR either long or short and we have not been compensated for this article.