Glaucus, page-54

Hi Arcachon,

Fyi, what I find quite fascinating about Glaucus reports is that while the first one always appears to be very comprehensive they never show a full hand. Articles and interviews I've seen with Glaucus also refer to using the 'element of surprise' where certain 'traps' could be strategically applied in the first report and dependent on the Company's formal response Glaucus will often waste no time dropping a bomb shell or two in response. In almost every instance where Glaucus have chosen to apply the word 'opinion' to any serious allegation in the first report you can almost certainly replace it with the word, 'evidence' because while they have yet to provide this it will most definitely already be in there possession

The only possible way to avoid the ongoing short attack on BLA after an initial Glaucus report would be for BLA to have immediately announced it had engaged independent auditors and/or independent forensic accountants with complete access to the Company's files and with Glaucus report in hand compile it's own opinion/report. Of course if there was something to hide this wouldn't produce the best outcome so maybe just stick with the same mantra employed by all the other respondents as it would appear BLA have already started doing.

The time, resources, and multi disciplinary team of experts engaged by Glaucus for each target is pretty extensive and its track record is quite extraordinary to say the least. So in response to your question the following is copied from part of a file I started compiling a couple of years ago. In terms of Glaucus 'failures' the closest you will probably find is Real Nutriceutical which i've also included below. Despite what some may suggest on first glance Fullshare is not a great example (of a Glaucus failure) unless you believe the Central Chinese Government banks will come to BLA's rescue. The Glaucus report on Fullshare was exceptional, the response from Fullshare laughable however two Chinese state owned banks have stepped in to keep the share price of Fullshare propped up so I continue watching for any planned exit strategy from banks.




08/03/2011 - Glaucus Research Report on Universal Travel Group


27/09/2013 - IN THE MATTER OF UNIVERSAL TRAVEL GROUP ⇓

"US Securities and Exchange Commission Files Fraud Charges Against Universal Travel Group, its Former CEO and Chair, and its Former Director, Secretary and Interim CFO"

17/02/2017 - NOTICE OF PENDENCY AND PROPOSED SETTLEMENT OF CLASS ACTION

​

____________________



26/04/2011 - Glaucus Research Report on Gulf Resources Inc.


12/09/2011 - IN THE MATTER OF GULF RESOURCES INC ⇓.

"On April 26, 2011, a report was issued publicly by Glaucus Research which asserted that the Company had materially overstated its revenue and net income, engaged in undisclosed related party transactions, concealed its CEO’s past, and as a result of all of these actions, had defrauded shareholders."

05/08/2013 - Order Approving Settlement and Providing for Notice



____________________



06/12/2011 - Glaucus Research Report on China Medical Technologies

06/12/2011 - China Medical Issues Response to Negative Glaucus Research Report ⇓


"The Company maintains that the allegations set forth in the Glaucus Research report concern matters which misrepresent the information they present and attribute motives to management that are based on innuendo... The Company denies the allegations entirely... Glaucus did not contact the Company to verify the facts, analyses and allegations in the Report."


26/06/2012 - Bondholders File For Bankruptcy

20/03/2017 - IN THE MATTER OF CHINA MEDICAL TECHNOLOGIES ⇓

"Former CEO and CFO of China Medical Charged in $400 Million Securities Fraud Scheme"

20/03/2017 - Wu-Tsang Indictment - U.S. Attorney's Office



____________________




28/01/2013 - Glaucus Research Report on China Metal Recycling


09/03/2015 - IN THE MATTER OF CHINA METAL RECYCLING (HOLDINGS) LIMITED

"I think it desirable that there is a comprehensive summary of the extent of the fraud perpetrated on the market generally in order that they can better understand why the Commission initially, and now the court, take the view that it is necessary and desirable that the Company is wound up."

09/03/2015 - Jonathan Harris - Judge of the Court of the High Court ⇑


____________________



04/04/2013 - Glaucus Research report on SouFun Holdings Ltd



29/03/2017 - IN THE MATTER OF FANG HOLDINGS LIMITED (formally SouFun) (NYSE:SFUN) ⇓

"Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Fang Holdings Limited... On March 29, 2017, a note published by Bloomberg News reported that Beijing City's housing commission canceled the brokerage license of a unit of Fang Holdings, stating that the unit had posted false information online in connection with property sales."




____________________





16/02/2015 - Glaucus Research Report on Ozner Water

"Ozner took 39 days to respond to basic questions about its business. Given the length of time, we expected better. The Clarification is first notable because, buried on page twelve, Ozner admitted that its prospectus contained a statement that was “not entirely accurate.” Which is another way of saying that the statement was false."

02/04/2015 - Glaucus Research issues a second rebuttal to Ozner Water

____________________




22/10/2015 - Glaucus Research Report on Real Nutriceutical Group Limited


22/10/2015 - Suspension of Trading


24/12/2015 - Real Nutriceutical Group Clarification Announcement #1


28/12/2015 - Glaucus Research issues a Rebuttal to Real Nutri


29/12/2015 - Real Nutriceutical Group Clarification Announcement #2


11/01/2016 - Glaucus Research issues a Second Rebuttal to Real Nutri


21/01/2016 - Real Nutri files a complaint for libel against a short selling institution in the United States District Court


22/02/2016 - Change in Auditor ⇓


"The board of directors of Real Nutriceutical together with its subsidiaries, announces that Deloitte Touche Tohmatsu ceased to be the auditor of the Company on 19 February 2016 as the Company and Deloitte could not agree on the scope of the Independent Review. As mentioned in the Company’s announcement dated 24 December 2015, the Company will engage an independent accounting firm to conduct an independent review on the allegations made against the Group as discussed in such announcement. Deloitte has requested that such Independent Review should include a more comprehensive scope which in their view is necessary for themselves as well as the Company to have a proper basis for concluding on the matters and that the Independent Review must be completed before the issuance of their auditor’s report."




22/04/2016 - Real Nutri Lawsuit Against Glaucus Dismissed


The two parties have agreed that:

1. Glaucus will not directly or indirectly or otherwise cause any third party to issue any further public reports, make any public comments or issue any public statements concerning the Company;

1. Glaucus will not directly or indirectly or otherwise make or cause any third party to make any further public statements that are disparaging about the Company, its products or services or financial condition, and any of its present or former officers, directors or employees;

III. Glaucus will post a copy of the Settlement Agreement on its website immediately proximate to Glaucus’ reports about Real Nutri, accessible on the same page as the Reports as long as the Reports are accessible on or through its website, and Glaucus is not obligated to withdraw the Reports;

1. the Company is entitled to state that its financial statements for current and prior years are audited, genuine and correct, and that its finances and business are conducted honestly and properly, as well as to respond to allegations to the contrary; and

1. the Company will file a notice of dismissal without prejudice of its Libel Litigation.

____________________




28/07/2016 - Glaucus Research Report on Tech Pro Technology Development Limited




28/07/2016 - Is this the biggest one-day short success ever? ⇓

Shares in Tech Pro Technology plunged more than 91 per cent on Thursday in Hong Kong following an attack by a short seller. We can’t immediately think of a bigger one-day fall in a stock targeted by a short in this way. Glaucus Research claimed the shares, which opened at HK$2.32, were worth zero, writes Jennifer Hughes from The Financial Times in Hong Kong.