Poly-American products approved 100 million dollar share repurchase plan

Absrtact: December 16, Poly-Mei (NYSE: JMEI) announced today that its board of Directors has approved a stock repurchase plan. Under the scheme, Poly-Mei can buy up to $100 million in the next 12 months

December 16, Poly (NYSE: JMEI) announced today that its board of Directors has approved a stock repurchase plan. Under the scheme, Poly-Mei products can buy up to 100 million dollars of company shares in the next 12 months. But the market reacted negatively to the seemingly positive news, with the Monday early gathers the United States to fall and create a record low.

Poly-American products can be bought in the open market at the general price repurchase shares, but also through private negotiations, bulk trading and/or through other legal channels to repurchase shares, specific repurchase action depending on market conditions, the need to follow the applicable laws and regulations. The board will review the stock repurchase plan on a regular basis and may approve adjustments to its terms and size. The plan provides funding for the repurchase plan through existing cash balances.

Chen Au, chairman and founder of Poly-Mei Products, said: "Our executive stock repurchase plan reflects the confidence of the company's management on the growth prospects and fundamentals of business operations." The repurchase plan reflects a commitment by our management to increase shareholder value while preserving sufficient future growth flexibility. ”

And just last week, two law firms in the United States successively launched a class action lawsuit on behalf of investors, accusing the company of failing to disclose the business Operation information in the IPO and subsequent process, causing losses to US investors, and the two lawyers invited investors who had bought shares to participate in class action and jointly claim.

The two law firms that initiated class action were the Robbinsgeller Rudman & Dowd LLP ("Robbins Law"), and the Rosen lawfirm (hereinafter "Rosen"). In the listing filing, the company has not disclosed to investors that it has relied on "suspicious" third-party commodity suppliers for its online store business, according to the Robbins Law.

Rosen says that there are multiple false disclosures, misleading statements, and undisclosed information in the United States. Among them, Poly-Mei excellent products did not accurately disclose its business model changes, that is, from the original model of commodity sales to the network store mode, and the change of the business model, will be the United States excellent products of the financial performance constitutes a huge risk, in addition to the United States excellent products are not in accordance with the disclosure of information expansion of the network store business.

May 16, 2014, the company's shares in the U.S. stock market opened 27.25 U.S. dollars, the same day in the initial public offering issued 11.1 million U.S. depository receipts, the highest share price reached 28.28 U.S. dollars.

But only a few months after the IPO, the company issued a disappointing third-quarter results for the market as of September 30, 2014.

The total turnover of poly-Mei products rose by only 31.4% in the year to 273 million U.S. dollars, the slowest quarterly growth recorded for the company.

While repurchase is often seen as good news, the US-American product still has a record low of 12.58 US dollars in early morning trading. As of press, the shares were sold at $12.82, down 5.04% from the Friday closing price.