Despite that I sold my position some weeks ago, I am still keeping an eye on CNOA. The recent management changes by announcing a new Chairman and a new Chief Executive Officer can lead to new enthusiasm in the stock price in the nearby future.
The new Chairman Mr. Kyle Jiang has served as Banking Investment Director at Shenzhen Careall Capital Investment. He was in charge of a variety of significant investment projects, including the $18 million fund raising for Bo Run Industrial in Shangdong, and assisted in the acquisitions of Shenzhen Skyrise Technology and China Security & Surveillance Technology, and the capital restructuring of SiKeDa. Mr. Jiang’s extensive experience in capital markets has enabled him to build strong relationships with private equity firms, venture capital and investment firms, banks and law firms.
Also Mr. Qian Qi the new CEO has enough experience in the investment, accountancy and operational field, this makes him well suited to assume operational and strategic responsibilities at China Organic Agriculture (CNOA), and will enable him to provide investors with the information they need.
The experiences both men have in the field of investments can in my opinion lead to attractive acquisitions in the nearby future.
Also the fact that the company had agreed to a settlement in the shareholder class action lawsuit commenced against it in December 2008 takes a lot of uncertainty away. Under the terms of the settlement, eligible class members would receive a total of $300,000 in cash together with shares of China Organic Agriculture’s common stock having a value of $300,000 in exchange for a release of all claims which class members have or may have against the Company, its directors, officers, affiliates, shareholders and agents, except claims arising out of or related to the settlement.
Qian Qi, the newly elected Chief Executive Officer of the Company commented, “The decision to settle this action reflects management’s desire to focus on the Company’s business and avoid the distractions that would result from mounting a defense to this lawsuit. Although we believe that the Company and its personnel did nothing improper, it is well worth it to pay the amount of the settlement and put this matter behind us and focus on growing our Company.”