500.com Limited (WBAI) issued a press release this morning announcing that the company was informed on February 28th that “the remaining provincial sports lottery administration centers to which the Company provides sport lottery sales services” plan on temporarily suspending online purchasing for lottery products. The company stated in their release that this would have a materially negative impact on the company’s financials. This comes on the heels of the company’s previous update, where they mentioned that some suspensions had taken place but didn’t clarify as to how many provinces had been affected. Provinces were instructed by the Chinese government to self-regulate online lottery services and report their findings back to the Chinese government by March 1. We knew that some suspensions had been made last week, but we were left waiting to see how many other provinces would join in prior to March 1st.
Stock Sale by Blue Ivy Investment
We had also recently uncovered an alarming stock sale by a company called “Blue Ivy Investment Ltd.” which, as stated in the company’s form F-1, can be controlled by via an entity called “Vision Knight Capital.” Mr. Zhe Wei, who sits on the Board of Directors of WBAI, is chairman of VKC. We have a Form 144 stamped on February 23 and dated on February 19 that shows “Blue Ivy Investment Ltd.” selling 553,000 shares of WBAI.
We’ll continue to follow the story closely and may possibly publish an article.
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