All Sorts Of Legal Tangles For L&L Energy Inc (NASDAQ:LLEN)

Posted by Michael Korte October 22, 2013 0 Comment 1419 views

On 19 September 2013, GeoInvesting split-open the ongoings at L&L Energy, Inc (NASDAQ:LLEN) is a very detailed report. The report stated that the company was as bad or even worse that a Chinese company, Longwei Petroleum. The latter had been delisted after GeoInvesting disclosed undeniable evidence of fraud. The company’s shares plummeted from more than $2.00 to below 10 cents.

The discrepancy

On 10 December, L&L Energy, Inc (NASDAQ:LLEN) had borrowed an amount of $3M from Phoenician Limited and had not disclosed the possibly highly-dilutive convertible nature of that loan more than 7 months. That in effect, is a violation of the federal securities laws that necessitate the instant disclosure of potentially dilutive financings such as these.

The company had mentioned this loan in its 2013 third quarter filing. Post that, L&L Energy, Inc (NASDAQ:LLEN) totally changed the description of the loan and said that it was a ‘Senior Secured-Convertible Note’ in the Note-17 of its financial 2013 10-k that was filed on 30 July 2013.

Monday’s trading

In Monday’s trading, L&L Energy, Inc (NASDAQ:LLEN) dropped by 10.24%. The opening price of the shares was $1.68, which climbed to an intraday high of $1.72 and dipped to a close of $1.49. Approximately 3.15 million shares were traded on Monday while an average volume of 3.69 million shares were traded over a 30 day period. The 52-week low of L&L Energy, Inc (NASDAQ:LLEN) shares is $0.94 and its 52-week high is $4.94. The company has a market capitalization of $62.68 million.

About the company

L&L Energy, Inc (NASDAQ:LLEN) is involved in coal-operations in the Guizhou & Yunnan provinces that are located in the south of the People’s Republic of China. As of 30 April 2012, it had 4 coal mines, 2 coal-washing plants, 1 coking-facility, and 3 coal wholesale and distribution-networks.

About Michael Korte

Michael Korte an investigative reporter at GDP Insider and is a breaking news reporter. Michael work includes investigations of misconduct by federal prosecutors and industrial air pollution around the nation's schools. His reporting has been recognized with the Hillman Prize for Newspaper Journalism, the Grantham Prize for Excellence in Reporting on the Environment, and the Philip Meyer Journalism Award for reporting that incorporates social science methods.

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