FAB Universal plunges after SA article claims $16.4M bond is undisclosed

FAB Universal (FU -18.9%) plunges after SA contributor The GeoTeam issues a report claiming that one of the company's Variable Interest Entities sold a RMB100M ($16.4M) bond in Aug. (and which currently trades on the Shenzhen exchange) that is nowhere to be found on the company's 10-Qs, in direct and plain violation of SEC regulations.

The author concludes, "FAB's very obvious failure to disclose $16.4 million in debt should take very little time for securities regulators and FAB's auditor (Friedman LLP) to confirm."

Update: The seeming discrepancy was first identified by SA Contributor UNEMON1 after the market closed last Friday.

Comments (1)
  • gsterling
    , contributor
    Comments (1411) | Send Message
    I guess that's a big FU to the shareholders.
    18 Nov 2013, 12:50 PM Reply Like
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