Look closely at the liquidators report for PEZ.., page-2

Hi Asteroider,

Thanks for your warning but I believe that the auditing process is a lot more straightforward when talking about a brick and mortar retailer and supplier.
While I can understand that auditors may not always get it right the process is a lot harder to mess up when dealing with physical assets.
I was a holder in major Mahjong table manufacturer Treyo (TYO) which was listed in your article. The market priced it as though it was a fraud but actually it was a great company. When visiting China I chanced to stumble upon one of the stores and viewed the Mahjong tables, they were beatiful. The story of TYO almost mirrors SBB and its my biggest concern with this stock.

1. The China based majority shareholders IPO the company in Australia and pitch the companys current offerings and growth potential.
2. The directors dont pay dividends, batten down the hatches and keep all shareholder communication to a minimum. They stop updating the website and allow any online presence to become outdated.
3. Australian shareholders sell out and 'third party' Chinese shareholders buy up stock.
4. The majority shareholder make what is essentially a takeover offer at just above the market price and with the support of the new Chinese shareholders it passes. Grant Thornton will sign off anything as "not fair but reasonable" for the purpose of the buyout by the majority shareholder meaning that it passes a basic legal hurdle. They pay a fraction of the IPO price but get all the money raises from the IPO and the whole company back for a fraction of what its worth. The remaining Australian shareholders are essentially 'compulsorily acquired' for an absolute rip off price. The company reprivatises and now has all the money raised from the ASX to expand for the benefit of the majority shareholders.

In the case of Mr Xu selling, he sells shares from time to time but he will likely eventually buy back the whole company anyway. The offer price the few minority Australian shareholders will likely come after market static kicks in and will depend on where the share price bottoms out.

In Treyos case, the majority shareholders bought back the company for about 1/5th of book value and all the growth that had occured since the IPO was taken with the shares. The price was at a comparable discount to SBBs current discount to its IPO price. Like I said Grant Thornton will sign off on anything as long as it is more than a fraction above market value. This is based to some extent on ASIC guidelines but is yet to be tested in court.

I have a larger stake im SBB than I did in TYO and if a comprable rip off price is offered I will send communication to shareholders and try to coordinate some kind of legal action. There must be people who bought the company at IPO still holding and the companys real value hasnt dropped much, although its market value has tanked. In this case the offer might be about 1.5c.