Kirin International Holding Inc (OTCMKTS:KIRI) Is Still Pushing Up

The sudden green spike that Kirin International Holding Inc (OTCMKTS:KIRI) charted on Friday extended in yesterday’s session as well. KIRI shot up right out of the gates and closed another 18% in the green, encroaching on three dollars per share once more. Volume remained well above the last month’s average, at 89 thousand shares traded.

KIRI‘s recent green push seems to have been caused by a press release the company put up last week. KIRI announced a memorandum of understanding signed with two private companies. The preliminary agreement includes plans for KIRI to issue 166,000,000 new common shares in order to acquire 100% interest in an entity called the “Wuhan Yangtze River New Port Logistics Co.” – a company that operates a logistics center on the river, it seems.

The PR states the shares will be curiously priced at $10 each, a massive premium even when compared against KIRI‘s new price level. The amount of shares to be issued is also staggering, considering KIRI last reported having just 20 million outstanding shares in total. Here is the brief version of the company’s balance sheet taken from its most current financial report for Q2:

  • $10.4 million in cash
  • $359 million in total assets
  • $300 million in total liabilities
  • $36.3 million in quarterly revenues
  • $4.3 million in quarterly net income

Some may find those numbers a little too good for a pink sheet company with a market cap that was well under $50 million just a few days ago. This discrepancy between expectations and reports is strengthened by the fact that KIRI is a company that is headquartered in China and conducts its operations in China.

Searching for a corporate website for Kirin International Holdings Inc is mostly futile. A Linkedin profile lists another domain, which turns out to be the site of Cathay Kylin International Investment Holding Group – an entity that shares KIRI‘s logo and reassures visitors that “virtue leads to a further way” on its home page.

The fact that KIRI dropped its $1.66 billion MOU press release in the morning hours on Sep 10 and the stock actually crashed 17% on that date makes the whole thing even more difficult to decipher. Investors would do well to tread carefully, especially if they are trying to chase a green runner up the charts.

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