GEO Investing

microcap club logo

The trials and tribulations of the Chinese Microcap RTO arena have been widely publicized by CNBC, financial journalists, and short sellers.  Most of the scrutiny has been well founded. In a nutshell, over the last few years many Chinese companies went public mostly through means of a reverse merger/reverse takeover (RTO) because it was the easiest, cheapest, and fastest way to get funding from US investors. A couple years ago the first high profile Chinese microcap announced accounting irregularities which broke the flood gates wide open. Soon after, investigative journalists have uncovered irregularities on several more Chinese microcaps, and ever since the whole space has really been deemed guilty until proven innocent.   GeoInvesting was one of the first firms to put boots on the ground in China to do due diligence into some of these companies.  Dan David is the VP and Co-Founder of GeoInvesting who also heads up the company’s China RTO research division.

Read More…